United States Seventh Circuit

After a tax refund arising out of the exercise of stock options bought with borrowed funds, a tax court order charging taxpayer with back taxes and interest is affirmed where a "transfer" of non-cash compensation to a recipient may not be postponed until after the option's exercise on the theory that borrowing to finance the transaction amounts to a second option that replaces the first.

Appellate Information

• Argued 05/23/2007
• Decided 07/03/2007
• Published 07/03/2007

Judges

• EASTERBROOK, Chief Judge., Before EASTERBROOK, Chief Judge, and BAUER and MANION, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Don P. Badgley, Badgley Mullins Law Group, Brian G. Isaacson (argued), Merrian & Isaacson, Seattle, WA, for Petitioners-Appellants.


• For Appellees:
  
• Joan I. Oppenheimer (argued), Department of Justice Tax Division, Appellate Section, Washington, DC, for Respondent-Appellee.