- 5 -
$10,321,015), which petitioner claimed in connection with its
computer software masters exported for reproduction and
distribution abroad.
Petitioner also claimed FSC commission deductions of
$4,049,134 for 1990 and $13,625,222 for 1991 with respect to its
export sales of standardized software products. Respondent has
allowed these deductions.
The dispositive issue to be resolved is whether the royalties
attributable to the licensees’ reproduction and distribution of
petitioner’s computer software masters outside the United States
constitute FTGR’s within the purview of section 924. Resolution of
this issue hinges upon whether the licensed computer software
masters constitute “export property” within the meaning of section
927(a)(1) and the temporary regulations thereunder.
Unless otherwise indicated, all section references are to the
Internal Revenue Code in effect for the years in issue. All Rule
references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are found
accordingly. The stipulations of facts and the attached exhibits
are incorporated herein by this reference.
A. Background
Petitioner, a Washington corporation, maintained its principal
place of business in Redmond, Washington, at the time the petition
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