Boeing Co. v. United States (U.S. Supreme Court)
The Internal Revenue Code provides for special tax treatment of export sales made by an American manufacturer through a qualifying subsidiary. The issue in this case concerned the method by which a corporation may allocate its sales income to maximize the amount of profits attributable to the subsidiary, thus qualifying for partial deferred taxation. The IRS concluded that Boeing’s method of allocating certain research and development expenses was improper, and that when properly allocated, Boeing was liable for back taxes in the amount of approximately $400 million. Boeing was awarded summary judgment in the district court, but the court of appeals reversed and upheld the IRS’s determination. We represented Boeing in successfully petitioning the Supreme Court to grant certiorari, and represented Boeing before the Court at the merits stage.