United States Fifth Circuit

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Duffie v. US, 08-20708

In an action seeking a tax refund, summary judgment for the government is affirmed for the reasons stated by the district court, namely, that: 1) while a taxpayer's subjective business purpose or profit motive may be relevant to the sham transaction inquiry, the lack of a subjective profit motive is not required to assess interest at the enhanced rate under 26 U.S.C. section 6621(c); and 2) a partner may not relitigate the tax court's determination that the partnership transactions resulting in the adjustments were factual or economic shams, that is, tax-motivated transactions as defined in section 6621(c).

Appellate Information

  • Decided 03/10/2010
  • Published 03/11/2010


  • CARL E. STEWART, Circuit Judge:, Before KING, JOLLY and STEWART, Circuit Judges.


  • United States Fifth Circuit


  • For Appellant:
  • Thomas E. Redding (argued), Sallie W. Gladney, Teresa Jean Womack, Redding & Associates, P.C., Houston, TX, for Plaintiffs-Appellants.

  • For Appellees:
  • Arthur Thomas Catterall (argued), Michael J. Haungs, Dept. of Justice, Tax Div. Appellate Section, Washington, DC, Michael D. Powell, Dept. of Justice, Tax Div., Dallas, TX, for Defendant-Appellant.