Richard T. Brigham and Margaret H. Brigham v. United States

OPINION OF THE COURT

VAN DUSEN, Circuit Judge.

The Government appeals from a May 13, 1975, district court judgment denying its claim for an offset against a tax refund awarded to plaintiffs-taxpayers, Richard T. and Margaret H. Brigham, on their 1966 individual tax return. 1 The question presented concerns the taxation of the gain taxpayers recognized on the liquidation of a “controlled foreign corporation” in which they held stock. The principal issue is whether 26 U.S.C. § 1248(d)(2) 2 permitted taxpayers to exclude from the corporation’s “earnings and profits” account a $210,586 gain the…