United States First Circuit

In a case involving the appropriate tax treatment of a contractual payment initially reported as ordinary income but later recharacterized as a capital gain, the IRS's denial of plaintiff-taxpayer's requested refund is affirmed over claims of error regarding: 1) the applicability of the "strong proof" rule; 2) the weight of the evidence as to whether a challenged payment constituted compensation for personal goodwill (and, thus, should have been taxed at capital gain rates); 3) exclusion of expert testimony; and 4) the lower court's refusal to consider the claim for a refund of self-employment tax.

Appellate Information

• Decided 01/29/2009
• Published 01/29/2009

Judges

• SELYA, Circuit Judge., Before LYNCH, Chief Judge, SELYA and BOUDIN, Circuit Judges.

Court

• United States First Circuit

Counsel

• For Appellant:
  
• James E. Higgins, with whom James E. Higgins, PLLC, John-Mark Turner, and Sheehan, Phinney, Bass + Green, P.A. were on brief, for appellants.


• For Appellees:
  
• Teresa T. Milton, Attorney, Tax Division, with whom Nathan J. Hochman, Assistant Attorney General, Thomas P. Colantuono, United States Attorney, and Bruce R. Ellisen, Attorney, Tax Division, were on brief, for appellee.