The Ninth Circuit Court of Appeals reversed the District Court for the Western District of Washington and ruled for the taxpayers. The Court of Appeals held that banks who received regulatory rights when they took over failed saving and loans at the government’s direction where entitled to cost basis in the acquired intangible assets.
Read the opinion here:
Washington Mutual v. U.S., Docket 09-36109 (9th Cir. March 3, 2011)
Read the District Court’s opinion here:
Washington Mutual v. U.S., Docket CO6-1550-JCC (W.D. Wash 2008)
Read more from the team that litigated the case for the taxpayers at Tax Appellate Blog.