This tax refund case is before the Court on the United States of America’s (the “IRS’s”) claim for the recovery of a refund erroneously paid to defendants Arthur and Dorothy McFerrin. Pending before the Court are the IRS’s Motion for Summary Judgment (the “Motion”) [Doc. # 14] [1] and Defendants Arthur and Dorothy McFerrins’ Cross-Motion [...]

COHEN, Judge: Respondent determined deficiencies of $7,352,495, $2,802,710, and $1,793,801 in petitioner’s Federal income taxes for its years ended September 30, 1995, 1996, and 1997, respectively. Ten separate adjustments were set forth in the statutory notice, and petitioner raised a new issue in its petition. Seven issues were settled by the parties before trial, and [...]

Applied Systems, a Subchapter S corporation, develops and sells software that independent insurance agencies use to manage their businesses. During the early 1990s Applied Systems improved its software package, and its investors (the taxpayers in this case) want to take a tax credit under 26 U.S.C. § 41 based on the amount by which Applied [...]

Plaintiff taxpayers filed a refund suit seeking money allegedly owed them from a tax credit for research and development expenses under I.R.C. § 41. In a matter of first impression in this circuit, we interpret the scope of “qualified research” under I.R.C. § 41, including the requirement in § 41(d)(1) that the taxpayer must intend [...]