Opinion
13365-16
08-13-2024
UPM, Inc., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Kathleen Kerrigan Chief Judge.
On December 10, 2021, respondent filed a Motion for Summary Judgment. Respondent's motion seeks adjudication on whether petitioner is entitled to tax credits for increasing research activities under § 41 that petitioner claimed in tax year ending September 30, 2010. Part of the credits in issue were purportedly generated in the tax year at issue, and the remaining credits were generated from 2004 to 2008, and were carried forward to the year at issue under § 39.
Unless otherwise indicated, statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times and Rule references are to the Tax Court Rules of Practice and Procedure.
Pursuant to a Court Order, petitioner filed a Motion for Leave to file Motion to Strike as its initial response to respondent's motion. On January 12, 2022, the Court denied petitioner's Motion for Leave and ordered that petitioner's lodged Motion to Strike be recharacterized as petitioner's response to respondent's motion. Petitioner then filed its First Supplemental Response to Motion for Summary Judgment which addressed the merits of respondent's motion. Pursuant to a Court Order, respondent timely filed his reply to petitioner's responses on February 28, 2022.
Upon due consideration of the parties' motion papers, it appears that there are material issues of fact in dispute with respect to petitioner's qualified research expenses for the year at issue and the calculation of its base amount under § 41(c)(1), both of which are necessary to calculate how much, if any, credit petitioner is entitled to. See § 41(a)(1)(A) and (B). Consequently, resolution of the issues in this case upon summary adjudication is not appropriate. See Rule 121(a)(2).
Upon due consideration, it is
ORDERED that respondent's Motion for Summary Judgment, dated December 10, 2021, is denied. It is further
ORDERED that the parties file a joint report which includes an update on pending discovery motions on or before October 11, 2024.