- 10 -
224 F.3d 874 (8th Cir. 2000), in which we held that officer
salaries and outside legal fees incurred in investigating a
potential consolidation that was ultimately consummated are
capital expenditures not currently deductible under section
162(a).
On March 21, 2000, the Internal Revenue Service (IRS)
released a document entitled “2000 Priority Guidance Plan”, in
which it listed “loan origination costs” among the expenditures
to be addressed in “[g]uidance on deduction and capitalization”.
On May 19, 2000, the Court of Appeals for the Third Circuit
reversed our decision in PNC Bancorp, Inc. v. Commissioner, 212
F.3d 822 (3d Cir. 2000), revg. 110 T.C. 349 (1998).
On August 29, 2000, the Court of Appeals for the Eighth
Circuit reversed in part our decision in Norwest Corp. v.
Commissioner, supra, affirming only our capitalization of outside
legal fees incurred after a “final decision” had been made to
enter into the consolidation. Wells Fargo & Co. and Subs. v.
Commissioner, 224 F.3d 874 (8th Cir. 2000), affg. in part and
revg. in part Norwest Corp. v. Commissioner, 112 T.C. 89
(1999).11
11 Before the Court of Appeals, the Commissioner conceded
the deductibility of outside legal fees incurred before a “final
decision” was made on the basis of Rev. Rul. 99-23, 1999-1 C.B.
998 (released on Apr. 30, 1999). Wells Fargo & Co. and Subs. v.
Commissioner, 224 F.3d 874, 888 (8th Cir. 2000), affg. in part
and revg. in part Norwest Corp. v. Commissioner, 112 T.C. 89
(continued...)
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