Reliant Energy Inc. v. United States

OPINION

ALLEGRA, Judge.

This tax refund suit is before the court on cross-motions for partial summary judgment. Plaintiff argues that a $500,000 advanced royalty payment it made in 1985 was currently deductible either as: (i) an advanced minimum royalty under Treas. Reg. § 1.612-3(b)(3); (ii) a delay rental payment under Treas. Reg. § 1.612-3(c); or (iii) an ordinary and necessary business expense under section 162 of the Internal Revenue Code of 1954 (26 U.S.C.). Following oral argument, and after careful consideration'of the briefs and submissions of both parties, this court holds that the…