- 5 - Second, petitioners provide the first page of RCC's private placement memorandum. That document describes RCC as a California limited partnership organized to further research and development of the technology involved relating to the high volume manufacturing of a fabricated all-plastic, reusable and recyclable shipping and storage container and pallet * * * which has various proven produce and industrial applications; to build the production tooling and equipment to manufacture and sell the Product; and to license the technology to manufacture the Product on a world-wide basis. The Amended Certificate of Limited Partnership for RCC was entered into on December 30, 1983. Petitioner's checks to RCC are dated June 12, 1992. It is unclear when the private placement memorandum was issued. It is possible that during the 9 years between RCC's formation and petitioner's investment, RCC started to manufacture and sell its product. If that is the case, petitioners would need to demonstrate that their $50,000 was spent on research or experimentation as opposed to manufacturing. This they have not done. It is also possible that RCC licensed the technology to another organization on an exclusive basis. In that event, RCC's research is not being conducted in connection with a trade or business of its own or petitioners' of developing recyclable plastic containers. As a result, petitioners, on whose behalf the research is being conducted, have not met the requirements of section 174(a). The above situations are merely hypothetical. The record does not provide enough evidence for more than speculation. ItPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011