Capital One Fin. Corp. v. Comm'r
United States Tax Court
Ps' subsidiaries, Capital One Bank (COB) and Capital One, F.S.B. (FSB), issuers of Visa and MasterCard credit cards, earn income from late fees charged to cardholders who do not timely pay at least their minimum monthly payment due. From 1995 to 1997 COB and FSB included the late fees in income when the fees were charged to cardholders; i.e., when they accrued under the all events test. On Aug. 5, 1997, Congress enacted the Taxpayer Relief Act of 1997, Pub.
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Ps' subsidiaries, Capital One Bank (COB) and Capital One, F.S.B. (FSB), issuers of Visa and MasterCard credit cards, earn income from late fees charged to cardholders who do not timely pay at least their minimum monthly payment due. From 1995 to 1997 COB and FSB included the late fees in income when the fees were charged to cardholders; i.e., when they accrued under the all events test. On Aug. 5, 1997, Congress enacted the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1004, 111 Stat. 911, which codified sec. 1272(a)(6)(C)(iii), I.R.C. This provision allows taxpayers who maintain a pool…
1Opinion of the Court
OPINION
Haines, Judge:
This case is before the Court on the parties’ cross-motions for partial summary judgment filed pursuant to Rule 121.1 The issue for decision is whether section 446(e) prohibits Capital One Bank (cob) and Capital One, F.S.B. (fsb), from changing their treatment of late-fee income from the current-inclusion method (when it accrued under the all events test) to a method which allows late-fee income to create or increase original issue discount (OID).2
Background
The parties have stipulated the facts applicable to the issue considered in this' Opinion. Capital One Financial…
2Cases cited35 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Casey v. CommissionerUnited States Tax Court · 1962
- Gitlitz v. CommissionerSupreme Court of the United States · 2001
- Wayne Bolt & Nut Co. v. CommissionerUnited States Tax Court · 1989
- FPL Group, Inc. v. CommissionerUnited States Tax Court · 2000
30 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Capital One Financial Corp. v. CommissionerCourt of Appeals for the Fourth Circuit · 2011
- John Hancock Life Ins. Co. (U.S.A.) v. Comm'rUnited States Tax Court · 2013
- Capital One Fin. Corp. v. Comm'rUnited States Tax Court · 2009
- Peco Foods, Inc. & Subsidiaries v. Comm'rUnited States Tax Court · 2012
- Capital One Fin. Corp. v. Comm'rUnited States Tax Court · 2008
9 more not listed; retrieve them via the Exa API.