- 79 - we should apply these higher threshold requirements reasonably and practically and assume that Congress set standards that are not impossible to meet. See United States v. American Trucking Associations, Inc., 310 U.S. 534, 543 (1940); Venture Funding, Ltd. v. Commissioner, 110 T.C. 236, 264 (1998) (Ruwe, J., dissenting). In applying each of the seven tests under section 41 to the facts herein, we shall consider the facts and circumstances in determining whether the taxpayer performed qualified research. 5. United Stationers, Inc. v. United States Both parties rely on the District Court's decision in United Stationers, Inc. v. United States, 982 F. Supp. 1279 (N.D. Ill. 1997), in advancing their differing positions as to whether Norwest engaged in qualified research under section 41. In United Stationers, the taxpayer, a large office supply wholesaler, sought the R&E credit with respect to eight software projects. To automate its business operations, the taxpayer acquired from a vendor a software package which it then customized to meet its particular needs. The court principally relied upon the report and recommendation of a magistrate judge to find the facts in the case, see United Stationers, Inc. v. United States, 79 AFTR 2d 97-1761, 39(...continued) Commentators argued that the "time-line" approach of the 1989 proposed regulation was unrealistic because progress in research and development is often achieved only in small, incremental steps. * * * 58 Fed. Reg. 15819 (Mar. 24, 1993).Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Next
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