Title Insurance & Trust Co. v. United States

The appellants in this case represent the estate of Charlotte B. Stevning, who originally brought suit requesting a refund of $6,909 for the 1975 tax year. Ms. Stevning’s claim was based on her calculation of tax under the income averaging provisions of the Internal Revenue Code, I.R.C. §§ 1301-1305. Her contention was that Treasury Regulation § 1.1302-2(b) (1966), which states that «ase period income may not be less than zero, impermissibly prevented her from reporting “negative income” in a base period year. The district court granted summary judgment in favor of the government and we…