United States Sixth Circuit

A decision to disallow interest deductions petitioner-company claimed for certain tax years and to assess accuracy-related tax penalties for those years is reversed where the tax court clearly erred in finding certain advances made to the company by its majority stockholders over several years were equity, as opposed to bona fide debt.

Appellate Information

• Decided 04/14/2006
• Published 04/14/2006

Judges

• Before:  MOORE, ROGERS, and McKEAGUE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Matthew P. Cavitch, Bogitan Law Firm, Memphis, Tennessee, for Appellant.  Teresa T. Milton, United States Department of Justice, Appellate Section Tax Division, Washington, D.C., for Appellee.   ON BRIEF:  Matthew P. Cavitch, G. Patrick Arnoult, Bogitan Law Firm, Memphis, Tennessee, for Appellant.  Teresa T. Milton, Richard Farber, United States Department of Justice, Appellate Section Tax Division, Washington, D.C., for Appellee.