Procedural Issues
Full Tax Court Opinions / Procedural Issues / Tax Opinions

Stein v. Commissioner
156 T.C. No. 11

On June 17, 2021, the Tax Court issued its opinion in Stein v. Commissioner (156 T.C. No. 11). The primary issue presented in Stein v. Commissioner was whether the Tax Court has discretion to grant the petitioners’ motion to dismiss a stand-alone petition for recovery of administrative costs when the petition did not invoke the Tax Court's jurisdiction to redetermine a deficiency under IRC § 6213(a). Factual Background in Stein v. Commissioner The petitioners filed an application for the award of reasonable administrative costs under IRC § 7430(a)(1).  After the IRS filed its answer to the petition, the petitioners filed a motion to voluntarily dismiss this case (motion), to which the IRS did not object. The Tax Court was faced with the question of whether it has the authority to grant the petitioners’ motion to dismiss the petitioner without entering a decision. Legal Background IRC § 7430(a)(1) provides that a taxpayer…

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June 20, 2021
Business Related Issues
Business Related Issues / Full Tax Court Opinions / Tax Opinions

Mylan Inc. v. Commissioner (156 T.C. No. 10)

On April 27, 2021, the Tax Court issued its opinion in Mylan Inc. v. Commissioner (156 T.C. No. 10). The underlying issues presented in Mylan Inc. v. Commissioner were (1) whether the legal expenses incurred in preparing notice letters to brand name drug companies of petitioner’s intent to make generic versions of its drugs as part of the FDA approval process to do the same were capital or ordinary expenses; and (2) whether the legal expenses incurred in defending against subsequent patent infringement suits were ordinary or capital in nature. Background to Mylan Inc. v. Commissioner The petitioner is a manufacturer of brand name and generic pharmaceutical drugs. From 2012 through 2014 it incurred significant amounts (tens of millions of dollars) of legal expenses in preparing notice letters and defending patent infringement lawsuits related to its generic versions of certain brand name drugs. On its 2012 through 2014 Federal income tax…

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June 20, 2021