Taft Broadcasting Co. V. United States

This appeal is brought by the United States following the entry of summary judgment by the district court in favor of the taxpayer, Taft Broadcasting Company, on its claim for a tax refund in the amount of $585,404. The outcome in this case turns on whether the taxpayer is entitled under 26 U.S.C. § 1033 to nonrecognition of gain it realized when it sold two radio stations in its 1973 tax year. The trial court determined on cross-motions for summary judgment that the taxpayer was entitled to nonrecognition of its gain and therefore to the refund. We reverse and remand for further proceedings.