- 81 - trial" or "a tentative procedure or policy; [especially] one adopted in uncertainty as to whether it will answer the desired purpose or bring about the desired result". The court then cited the legislative history of the test and found that it was necessary to determine the extent of uncertainty that existed in the taxpayer's projects. The court concluded that "while the aspired benefits of the projects were in doubt, the development of the means that would allow Stationers to potentially achieve those benefits was not." Id. at 1285. Despite the court's finding that the taxpayer failed to satisfy both the discovery and process-of-experimentation tests, it considered whether the taxpayer could have satisfied any of the internal use software tests. In doing so, the court rejected the magistrate judge's findings that the taxpayer did not satisfy the innovativeness test. Instead, the court noted that the "Magistrate Judge was correct in reasoning that Stationers' projects `simply increased efficiency and revenues for Plaintiff'," but nonetheless concluded that "[the projects] all fall under the plain meaning of the definition included in the legislative history" and were thus innovative. Id. at 1287-1288. The court did, however, agree with the magistrate judge and find that the taxpayer failed to satisfy the significant economic risk test because "`the ability to implement [the projects] was clear from the outset. The only risk or uncertainty was whetherPage: Previous 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Next
Last modified: May 25, 2011