Norwest Corp. v. Commissioner
United States Tax Court
P purchased operating and applications software for use in its banking and related businesses. The software was acquired subject to license agreements that entitled P to use the software on a nonexclusive, nontransferable basis for an indefinite or perpetual term. P did not purchase any exclusive copyright rights or other intellectual property rights underlying any of the software in issue and was not permitted to reproduce the software outside P's affiliated group.
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P purchased operating and applications software for use in its banking and related businesses. The software was acquired subject to license agreements that entitled P to use the software on a nonexclusive, nontransferable basis for an indefinite or perpetual term. P did not purchase any exclusive copyright rights or other intellectual property rights underlying any of the software in issue and was not permitted to reproduce the software outside P's affiliated group. Held: The computer software acquired by P is tangible personal property eligible for the investment tax credit. The intrinsic…
1Opinion of the Court
HALPERN, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income taxes:
Year Deficiency
1983 . $2,605,571
1984 . 2,442,134
1985 . 29,187
1986 . 19,301,530
Respondent also determined that the provision for increased interest under section 6621(c) applied for 1983, 1984, and 1986. Unless otherwise noted, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.
After concessions by the parties and the continuation of other issues, the sole issue for decision is…
2Cases cited10 opinions
- Ronnen v. CommissionerUnited States Tax Court · 1988
- David E. Gantner and Sandra L. Gantner v. Commissioner of Internal Revenue, David E. Gantner and Sandra L. Gantner v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1990
- Walt Disney Productions v. United States of America, Walt Disney Productions v. United StatesCourt of Appeals for the Ninth Circuit · 1973
- Comshare, Inc. v. United StatesCourt of Appeals for the Sixth Circuit · 1994
- Texas Instruments Incorporated, Cross-Appellant v. United States of America, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1977
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