- 39 -
the Internal Revenue Service in published revenue rulings.
Having made a concession in * * * [the revenue ruling], we
believe respondent should be so bound."); ZuHone v. Commissioner,
T.C. Memo. 1988-142 (revenue rulings are not authority binding on
this Court, but they may, in certain circumstances, constitute an
admission or concession by the Commissioner), affd. 883 F.2d 1317
(7th Cir. 1989); see also Rev. Proc. 89-14, sec. 7.01(5), 1989-1
C.B. 814 (taxpayers generally may rely upon published revenue
rulings in determining the tax treatment of their own
transactions).
It is clear from Rev. Rul. 69-482, supra, that it is
respondent's position that the tax consequences of transfers by
holders of patents to related persons that do not meet the
requirements for capital gains treatment under section 1235 will
be determined under other sections of the Code. The ruling has
not been revoked, modified, or obsoleted, nor has the law
changed. We, therefore, treat respondent's position in Rev. Rul.
69-482, 1969-2 C.B. 164, as a concession that the Leas are
entitled to treat the payments as long-term capital gains from
the sale or exchange of the patents if they can establish that
they meet the factual requirements of the ruling. Since we have
found that they meet those requirements, the Leas are entitled to
long-term capital gain treatment of all the patent payments in
issue.
Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 NextLast modified: May 25, 2011