Square D Co. v. Comm'r
United States Tax Court
P, an accrual method taxpayer, is a U.S. corp. and subs. wholly owned by S, a foreign corp. P accrued but did not pay interest owed to S and another related foreign person during 1991 and 1992 and claimed deductions of such accrued interest in those years. R disallowed any deduction in a year prior to the year the interest was actually paid and relies on sec. 1.267(a)-3, Income Tax Regs., in support of his position.
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P, an accrual method taxpayer, is a U.S. corp. and subs. wholly owned by S, a foreign corp. P accrued but did not pay interest owed to S and another related foreign person during 1991 and 1992 and claimed deductions of such accrued interest in those years. R disallowed any deduction in a year prior to the year the interest was actually paid and relies on sec. 1.267(a)-3, Income Tax Regs., in support of his position. Held, the instant case raises the identical issue decided in Tate & Lyle, Inc. v. Commissioner, 103 T.C. 656 (1994), revd. and remanded 87 F.3d 99 (3d Cir. 1996), of whether sec.…
1Opinion of the Court
OPINION
Gale, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes of $7,420,227, $28,971,522, and $15,285,996, for taxable years 1990, 1991, and 1992, respectively. Petitioner claims overpayments of $12,486,577 and $18,289 for taxable years 1990 and 1992, respectively. We must decide whether petitioner, an accrual method taxpayer, may deduct certain interest owed to related foreign persons during the taxable years in which the interest was accrued but not paid.1
Unless otherwise noted, all section references are to the Internal Revenue Code in effect for taxable years…
2Cases cited14 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Food & Drug Administration v. Brown & Williamson Tobacco Corp.Supreme Court of the United States · 2000
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Whitney v. RobertsonSupreme Court of the United States · 1888
- Holly Farms Corp. v. National Labor Relations BoardSupreme Court of the United States · 1996
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3Cited by18 opinions
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- Square D Company and Subsidiaries v. Commissioner of the Internal Revenue ServiceCourt of Appeals for the Seventh Circuit · 2006
- Estate of Silver v. Comm'rUnited States Tax Court · 2003
- Square D Co. v. Comm'rUnited States Tax Court · 2003
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