United States First Circuit

Summary judgment in favor of the government rejecting plaintiff's claim for a tax refund is reversed and remanded, where: 1) plaintiff, a U.S. tax payer, sold a line of business in Puerto Rico to a foreign corporation that does not pay U.S. corporate income taxes; 2) a reduction in a seller's tax credit cap as a result of the sale of a business line is appropriate only in the event of a corresponding increase in the buyer's cap; and 3) since there is no claim that the transaction at issue in this case increased or could have increased any credit cap attributed to plaintiff or its subsidiaries, the transfers did not reduce plaintiff's credit cap.

Appellate Information

• Decided 06/03/2014
• Published 06/03/2014

Judges

• KAYATTA

Court

• United States First Circuit

Counsel