Court Cases

December 23, 2024 | Travis A. Greaves, United States Tax Court Judge | Docket No. 4759-22  Short Summary  Phoenix Design Group, a Tennessee-based engineering consulting firm, claimed substantial R&D tax credits for their work performed on over 200 projects in 2013 through 2016. The IRS audited the company and denied the credits, arguing that the […]

May 10, 2023 | Copeland, United States Tax Court Judge | Docket No. 26176-16 Short Summary  Harper v. Commissioner involves Jeffrey and Katherine Harper, who owned and operated Harper Construction Co., a business specializing in design-build construction projects. The dispute arose after the IRS denied the Harpers’ claims for over $800,000 in federal R&D tax

July 6, 2023 | Judge Nega | United States Tax Court | Docket Nos. 21587-18, 21588-18 Short Summary  The case involved Mark Betz, Christine Betz, Dennis Lincoln, and Julia Lincoln, shareholders in Catalytic Products International, Inc. (CPI), an S corporation that designs air pollution control systems. They claimed a federal research tax credit for 2014

July 16, 2021 | Jill N. Parrish, District Judge | District of Utah | Docket No. 2:20-cv-00501-JNP  Short Summary  This case involves Intermountain Electronics, Inc., a Utah-based company, suing the United States after the IRS denied its claim for a federal tax refund based on the Research and Development (R&D) tax credit for 2010 and

January 23, 2017 | Sharon L. Ovington, United States Magistrate Judge | Case No. 3:15-cv-294  Short Summary This case involves Dennis and Linda Quebe, owners of Quebe Holdings, Inc., who claimed research and development (R&D) tax credits on their tax returns for 2009 and 2010. The IRS challenged these claims, arguing that the credits were

March 3, 1930 | L. Hand, Circuit Judge | Docket No. 114  Short Summary  Cohan v. Commissioner is a landmark tax case involving George M. Cohan, a well-known Broadway producer and entertainer, who challenged the IRS’s denial of his business expense deductions. The dispute centered on whether Cohan could deduct certain business-related expenses without exact

December 6, 2019 | Joseph Robert Goeke, United States Tax Court Judge | Docket No. 405-17   Short Summary Populous Holdings, Inc., an architectural design firm, claimed federal research tax credits for work done under several client contracts. The IRS denied these credits, arguing that the research was “funded” by clients and therefore didn’t qualify.

April 30, 2024 | Before EASTERBROOK, JACKSON-AKIWUMI, and LEE, Circuit Judges   Short Summary This case involved Scott and Gayla Moore, owners of Nevco, Inc., who sought a tax credit for “qualified” research expenses under Section 41 of the Internal Revenue Code, specifically including the salary and bonus of Nevco’s President and COO, Gary Robert.

January 29, 2010 | David C. Godbey, United States District Judge | Docket No. 3:06-CV-0726-N   Short Summary Trinity Industries, a large shipbuilding company, filed a lawsuit against the United States government after the IRS denied its claims for research and development (R&D) tax credits related to several ships it designed and built in the

October 1, 2014 | Vasquez, United States Tax Court Judge | Docket No. 14435-09, 14460-09, 6183-10, 6210-10   Short Summary This case involves Eric Suder and his company, Estech Systems, Inc. (ESI), who claimed federal research tax credits for developing new telephone systems and related technology. The IRS challenged whether ESI’s projects truly qualified as

January 23, 2014 | Priscilla R. Owen, Circuit Judge | United States Court of Appeals for the Fifth Circuit | Docket No. 12-60727   Short Summary This case involved a group of shareholders from Farouk Systems, Inc. (FSI), a company known for developing and selling hair care products, who challenged the IRS over denied research

July 15, 2021 | Stewart, District Judge, United States District Court for the District of Utah | Docket No. 2:20-CV-890-TS-CMR   Short Summary Premier Tech, Inc., a Utah-based company, took the United States government to court after the IRS denied its request for a $190,263 tax refund. The refund was based on an amended tax

May 6, 2024 | Benton, United States Court of Appeals for the Eighth Circuit Judge | Docket No. 23-1523   Short Summary Meyer, Borgman & Johnson, Inc. (MBJ), a structural engineering firm, challenged the Commissioner of Internal Revenue’s denial of about $190,000 in research tax credits, arguing that its work creating structural designs qualified as

November 29, 1995 | Before RICH, NEWMAN, and SCHALL, Circuit Judges  Short Summary This case involves Fairchild Industries, Inc., an aerospace company, and the United States government. Fairchild entered into a contract with the Air Force to design and build a new training aircraft and later claimed research tax credits for the related expenses. The

April 15, 2013 | Dave Lee Brannon, U.S. Magistrate Judge | Southern District of Florida | Docket No. 9:12-cv-80334   Short Summary Geosyntec Consultants, Inc. is an engineering firm that works with both public and private clients on environmental and infrastructure projects. The company filed a lawsuit against the United States after the IRS denied

September 20, 2012 | William L. Standish | Western District of Pennsylvania | Civil Action No. 09-351   Short Summary Bayer Corporation and its subsidiaries filed a lawsuit against the United States seeking a refund of federal income taxes. The dispute centered on the IRS’s complete or partial denial of research tax credits (for Qualified

June 26, 2020 | John R. Adams, District Judge | Northern District of Ohio | Docket No. 5:16-cv-02052   Short Summary Audio Technica U.S., Inc., a company that makes audio equipment, filed a lawsuit against the United States government after a dispute over its claim for the federal research and development (R&D) tax credit. The

April 26, 2000 | LOURIE, Circuit Judge | Docket No. 99-5039 | United States Court of Appeals for the Federal Circuit   Short Summary Lockheed Martin Corporation, one of the largest defense contractors in the U.S., filed a lawsuit against the federal government after the IRS denied its claim for research tax credits related to

March 7, 2023 | Brennan, Circuit Judge, United States Court of Appeals for the Seventh Circuit | Docket No. 21-3145   Short Summary Little Sandy Coal Company, the parent of a shipbuilding business, claimed federal research tax credits for designing and building 11 new vessels, arguing that much of their work qualified as “research” under

March 29, 2021 | BUCH, United States Tax Court Judge | Docket No. 20237-16   Short Summary This case is about Leon Max, a successful fashion designer and founder of Leon Max, Inc., and his disagreement with the IRS over tax credits. Leon Max claimed federal research and development (R&D) tax credits for 2011 and

May 26, 1994 | Pate, Special Trial Judge | Docket No. 10309-91 Short Summary Efrem V. Fudim and his wife Margarita L. Fudim challenged the IRS over the denial of research and development (R&D) tax credits related to Efrem’s business, which focused on developing rapid modeling technology. The main issue was whether the expenses they

January 11, 2021 | Judge Lauber | United States Tax Court | Docket Nos. 27268-13, 27309-13, 27371-13, 27373-13, 27374-13, 27375-13   Short Summary In this case, the Tangel family, who were shareholders in Enercon Engineering, Inc., challenged the IRS over denied research and development (R&D) tax credits. Enercon had claimed R&D credits for work done

June 9, 2009 | Edith Brown Clement, Circuit Judge | Fifth Circuit Court of Appeals | Docket No. 08-20377   Short Summary United States v. McFerrin involved Arthur R. McFerrin, a chemical engineer and business owner, and his wife, Dorothy, who claimed a large federal tax credit for research activities through their companies. The dispute

November 13, 2023 | Higginbotham, Circuit Judge, United States Court of Appeals for the Fifth Circuit | Docket No. 22-30764   Short Summary In United States v. Grigsby, Leonard and Barbara Grigsby, as owners of Cajun Industries LLC, sought a substantial refund based on R&D tax credits claimed for work performed on major construction projects.

September 7, 2012 | Edward R. Korman, Senior United States District Court Judge | Second Circuit Court of Appeals | Docket No. 11-2552   Short Summary Union Carbide Corporation and its subsidiaries took on the IRS (Commissioner of Internal Revenue) in a dispute over research tax credits. The main issue was whether Union Carbide could

 April 15, 2019 | David Buch, Judge | United States Tax Court | Docket No. 21655-15   Short Summary Siemer Milling Company, a family-owned business that mills and sells wheat flour, claimed research tax credits for several projects it conducted in 2011 and 2012. The IRS reviewed these claims and denied the credits, saying that

| May 31, 2015 | Campbell-Smith, Chief Judge, United States Court of Federal Claims | Docket No. 12-576T Short Summary  Dynetics, Inc., an engineering company based in Alabama, filed a lawsuit against the United States after the IRS denied its claim for research tax credits. The main dispute centered on whether Dynetics’ research activities under