Microsoft Corp. v. Commissioner
United States Tax Court
During 1990 and 1991, petitioner engaged its wholly owned subsidiary, a foreign sales corporation, to act as its agent for the international sales of standardized mass-marketed computer software products and computer software masters. The standardized software products were copyrighted articles sold without a right to reproduce abroad.
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During 1990 and 1991, petitioner engaged its wholly owned subsidiary, a foreign sales corporation, to act as its agent for the international sales of standardized mass-marketed computer software products and computer software masters. The standardized software products were copyrighted articles sold without a right to reproduce abroad. The software masters were licensed to related foreign subsidiaries and unrelated foreign equipment manufacturers with a right to reproduce abroad. In the notices of deficiency, respondent allowed the deductions for the foreign sales corporation commissions…
1Opinion of the Court
Jacobs, Judge:
Pursuant to two notices of deficiency addressed to petitioner, respondent determined Federal income tax deficiencies and an overpayment, as follows:
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The deficiencies determined for 1987-89 are attributable to respondent’s adjustments to general business credit carrybacks from 1990 and 1991 to 1987-89 and to foreign tax credit carrybacks from 1990 to 1987 and 1988. These adjustments are computational, arising from income adjustments for 1990 and 1991.
Introduction
Petitioner develops, produces, and markets computer software. During 1990 and 1991, petitioner engaged its…
2Cases cited22 opinions
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- United States v. CorrellSupreme Court of the United States · 1967
- United States v. Riverside Bayview Homes, Inc.Supreme Court of the United States · 1985
- United States v. CartwrightSupreme Court of the United States · 1973
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
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