Federal Paper Bd. Co. v. Commissioner
United States Tax Court
In March 1976, P and other defendants were indicted for Federal antitrust law violations that involved folding cartons and not milk cartons. P pleaded nolo contendere to the charges set forth in the indictment. Subsequently, P paid amounts to settle antitrust litigation brought under sec. 4 of the Clayton Act. P paid a portion of those amounts to plaintiffs to settle a class action.
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In March 1976, P and other defendants were indicted for Federal antitrust law violations that involved folding cartons and not milk cartons. P pleaded nolo contendere to the charges set forth in the indictment. Subsequently, P paid amounts to settle antitrust litigation brought under sec. 4 of the Clayton Act. P paid a portion of those amounts to plaintiffs to settle a class action. P paid the remainder of those amounts to plaintiffs that chose not to participate in the settlement of the class action (opt-outs) -- the opt-outs chose, instead, to negotiate on their own behalves with P and…
1Opinion of the Court
WELLS, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income taxes:
TYE— Deficiency
12/27/75. 1$595,009
12/30/78. 595,009
After concessions, the issue for decision is whether section 162(g)2 disallows a deduction for two-thirds of all amounts paid by petitioner to settle antitrust actions brought under section 4 of the Clayton Act.3
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioner’s principal place of business or office was in…
2Cases cited16 opinions
- Texas Industries, Inc. v. Radcliff Materials, Inc.Supreme Court of the United States · 1981
- United States v. GilmoreSupreme Court of the United States · 1963
- Chattanooga Foundry & Pipe Works v. City of AtlantaSupreme Court of the United States · 1906
- Mason K. Knuckles and Bernice A. Knuckles v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1965
- Boagni v. CommissionerUnited States Tax Court · 1973
11 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Hartz Mountain Industries, Inc. v. CommissionerUnited States Tax Court · 1989
- Humphrey, Farrington & McClain, P.C. v. Comm'rUnited States Tax Court · 2013
- Flintkote Company v. United StatesCourt of Appeals for the Ninth Circuit · 1993
- McDermott, Inc. v. CommissionerUnited States Tax Court · 1993
- Federal Paper Bd. Co. v. CommissionerUnited States Tax Court · 1988
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