INTERSPORT FASHIONS WEST, INC., Plaintiff, v. THE UNITED STATES OF AMERICA, Defendant., 103 Fed. Cl. 396

Summary

Plaintiff taxpayer, a wholesaler of motorcycle apparel, sought, by amended returns, a refund of corporate tax stemming from restructuring expenses that had been incurred by its parent company. It claimed deductions for management fees and legal & consulting fees based on its purported allocable share of the restructuring expenses, on the amended returns. IRS disallowed the deductions on two amended returns as prohibited under 26 C.F.R. § 1.482-1(a)(3), because taxpayer had not claimed them on a timely filed tax return. The deduction was allowed where taken on a timely return.