Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Plaintiff filed an instant refund suit alleging that she was entitled to a refund of the income and Medicare taxes she paid in 1999-2000. At issue was whether plaintiff could postpone tax consequences attributable to her option exercises during 1999 and early 2000 under Internal Revenue Code 83(c)(3). Also at issue was whether plaintiff could defer tax consequences for a distinct reason under Treasury Regulation 1.83-3(k). The court held that plaintiff could not postpone tax consequences attributable to her option exercises where she did not demonstrate an entitlement to deferral of tax consequences under section 83(c)(3). The court remanded the issue related to the deferral under section 1.83-3 for further proceedings.