WASHINGTON, D.C. — The U.S. Department of Justice (DOJ) announced the Federal Circuit Court of Appeals' recent upholding of a decision by the Court of Federal Claims relating to Sunoco Inc.'s attempting of $1 billion in credits on federal tax returns.
The Federal Circuit Court refused Sunoco's attempt to deduct "cost of goods sold expenses" as an "excise tax expense" in Sunoco, Inc. v. United States, according to the DOJ. The case stems from the petroleum and petrochemical company's $1 billion alcohol fuel mixture credits taken on federal tax returns which ultimately lowered its federal corporate income tax.
The company reduced its taxes with an excise tax, which it did not really pay and attempted to gain a $300 million reduction in taxes, the DOJ said.
In its opinion, the court stated the Internal Revenue Service Code prevented Sunoco from gaining the reduction and stated "We have already established that Congress does not generally allow taxpayers to receive a tax benefit twice."