United States Ninth Circuit

In a tax case in which Texaco sought a tax refund of over $100 million under 26 U.S.C. section 1341(a) because it was required to pay out, pursuant to a settlement agreement with the Department of Energy, sums that it had previously included in its gross income, a ruling in favor of Texaco is vacated and remanded where the language in section 1341(b)(2) plainly precludes Texaco from using the computation of tax set forth in section 1341(a). Section 1341(b)(2) prohibits the use of a section 1341(a) computation by an entity other than a public utility with respect to any amount which was included in its gross income in a prior taxable year by reason of the sale or other disposition of stock in trade or inventory.

Appellate Information

• Argued 04/17/2008
• Decided 06/13/2008
• Published 06/13/2008

Judges

• CALLAHAN, Circuit Judge:, Before:  PROCTER HUG, JR., MARY M. SCHROEDER, and CONSUELO M. CALLAHAN, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellees:
  
• Eileen J. O'Connor, Assistant Attorney General, Richard T. Morrison, Deputy Assistant Attorney General, Nathan J. Hochman (argued), Gilbert S. Rotherberg, Richard Farber, and Judith A. Hagley, of Washington, D.C., for the defendant-appellant., William L. Goldman (argued), Robin L. Greenhouse, and Michael F. Kelleher of McDermott Will & Emery LLP of Washington, D.C., and Joseph H. Selby of McDermott Will & Emery LLP of Boston, Massachusetts, for the plaintiff-appellee.