- 6 -
and 1991 to 1989 and to increase the R&E credit for 1986 through
1991.
For purposes of trial, briefing, and opinion, the parties have
selected 8 of the 67 internal use software development activities
to serve as representative or sample activities to determine the
outcome of the other 59. The parties agree that $20,552,274 of the
$22,658,829 in expenditures claimed by petitioner as associated
with the eight internal use software development activities have
been substantiated. In addition, the parties agree that the
remaining 59 activities are deemed substantiated in the same ratio
(90.7 percent) as the 8 sample activities. The parties further
agree that if we determine that any of the 8 sample activities
qualify for the R&E credit, the remaining 59 activities will be
deemed qualified for the credit according to an agreed-upon
formula.
The sole issue we must decide herein is whether Norwest
Corporation & Subsidiaries (petitioner or Norwest) is entitled to
the R&E credit with respect to any or all of the eight sample
internal use software development activities conducted between 1986
and 1991. Resolution of this issue requires us to interpret and
apply the four statutory requirements for the credit provided in
section 41, and the three additional requirements provided by
Congress in the conference report accompanying the Tax Reform Act
of 1986 (TRA 1986), Pub. L. 99-514, 100 Stat. 2085, specifically
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011