Andres Iglesias v. The United States of America

GLASSER, District Judge:

Plaintiff, Andres Iglesias, brought this action for a refund of the income tax paid on prejudgment interest recovered by plaintiff pursuant to a United States court judgment. Plaintiff, a nonresident alien, maintains that the prejudgment interest he received was not taxable income under § 861 of the Internal Revenue Code, 26 U.S.C. § 861 (1986), and Treasury Regulation § 1.861-2(a)(l). The district court held that plaintiff was entitled to a tax refund and granted plaintiffs motion for summary judgment. We hold that the prejudgment interest plaintiff recovered falls…