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Costs Of Unsuccessful Criminal Defense Are Deductible "Ordinary And Necessary" Business Expenses--Tellier V. Commissioner, Michigan Law Review
Costs Of Unsuccessful Criminal Defense Are Deductible "Ordinary And Necessary" Business Expenses--Tellier V. Commissioner, Michigan Law Review
Michigan Law Review
Taxpayer, a broker and underwriter, was convicted for violations of the Securities Act of 1933 and the federal mail fraud statute, and for conspiracy to violate those statutes. He claimed a deduction for the legal expenses incurred in his defense. The Commissioner's disallowance of the deduction was sustained by the Tax Court. On appeal to the Court of Appeals for the Second Circuit sitting en banc, held, reversed. Legal expenses incurred in an unsuccessful defense against criminal charges arising out of a trade or occupation are deductible "ordinary and necessary" business expenses.
Differing Views On Repayments By Manufacturers To Dealers For Expenses Required By The Manufacturers As Price Readjustments Under I.R.C. Section 6416(B)(1)--General Motors Corp. V. United States; Waterman-Bic Pen Corp. V. United States, Michigan Law Review
Michigan Law Review
The Internal Revenue Code of 1954 exacts a manufacturer's excise tax based on sales price; if the sales price is readjusted by means of a "bona fide discount, rebate or allowance," the manufacturer is entitled to a tax credit under section 6416(b) (1). In two recent cases, General Motors Corp. v. United States, and Waterman-Bic Pen Corp. v. United States, manufacturers have sought tax credits, claiming that their reimbursements to dealers for expenses which the manufacturers had required the dealers to incur subsequent to the time of sale constituted price readjustments. The Court of Claims in General Motors …