Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

American Express Co. and Affiliated Subsidiaries v. United States

Denial of refund sought by American Express affirmed; deference was due to IRS's interpretations of its own Revenue Procedure, IRS properly construed the term "services" appearing in Revenue Procedure to exclude annual cardholder payments to American Express for credit commitment, insurance, and luggage tags, and all revenue from fees was properly required to be reported in year it was received.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Appealed from: United States Court of Federal Claims

Judge Emily C. Hewitt

This case presents a simple issue with significant monetary consequences — whether the Internal Revenue Service (“IRS”) properly construed the term “services” appearing in Revenue Procedure 71-21, 1971-2 C.B. 549 to exclude annual cardholder payments to American Express for credit commitment, insurance, and luggage tags. We defer to the IRS’s reasonable interpretation of its own Revenue Procedure that payments for credit are not for services. Although some portion of the annual cardholder payments were made for services, even under the IRS interpretation of the term, American Express does not challenge the IRS’s refusal to accept American Express’s attempt to segregate this services portion from the portion that was not for services. Therefore, all the revenue from the fees was properly required to be reported in the year it was received. We accordingly affirm the decision of the Court of Federal Claims denying the refund sought by American Express for the 1987 tax year.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
British Legal Awards 2024
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
GlobeSt. Healthcare Real Estate 2024
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
ThinkAdvisor LUMINARIES Awards 2024
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More
Go to Events Go to Webcasts
FEDERAL PUBLIC DEFENDER VACANCY MIDDLE DISTRICT OF PENNSYLVANIA

FEDERAL PUBLIC DEFENDER VACANCY MIDDLE DISTRICT OF PENNSYLVANIA Refer to: www.ca3.uscourts.gov for detailed announcement...


Apply Now ›
BUSINESS LITIGATION ASSOCIATE -- BOSTON, MA

The Business Litigation Group of the Boston office of McCarter & English seeks a litigation associate with 3-5 years of business litigat...


Apply Now ›
TRUSTS & ESTATES ATTORNEY

McCarter and English is actively seeking a trusts and estates associate for our Newark, NJ office with 3-5 years of experience in estate pla...


Apply Now ›
Go to Lawjobs