Chicago based client succeeds in federal income tax lawsuit

Client(s) Chicago based client

Jones Day represented a Chicago based client in a successful federal income tax lawsuit action in United States District Court for the Northern District of Illinois. The IRS assessed over $1.5 million in tax related to the client's participation in the Mexican Debt for Equity Program in the late 1980's. The Company paid those taxes in 1998 under protest and filed an administrative refund claim with the IRS, which, after appeal, was ultimately denied in 2005. Jones Day, on behalf of the Company, filed suit in 2007 against the United States to obtain a refund of the tax paid and applicable interest. On April 7, 2010, the Court granted the Company's motion for summary judgment, and issued a final order on May 7, 2010 entering judgment in the Company's favor, awarding nearly $6 million in tax and interest. The United States dropped its appeal less than one month after filing it.