Northrop Corporation Employee Insurance Benefit Plans Master Trust v. United States

Petition for certiorari denied on December 3, 2012
Docket No. Op. Below Argument Opinion Vote Author Term
11-1528 Fed. Cl. N/A N/A N/A N/A OT 2012

Issue: (1) Whether 26 U.S.C. § 512(a)(3)(E)(i), which provides that investment income of a voluntary employees’ beneficiary association (“VEBA”) is tax exempt only if a set-aside of the income for a purpose specified in Section 512(a)(3)(B)(ii) “does not result in an amount of assets set aside for such purpose in excess of the account limit determined under section 419A” – which, along with Section 419, limits an employer’s deduction for contributions to a VEBA – must be interpreted consistently with Sections 419 and 419A to mean that a set-aside of income results in set-aside assets only if the income is considered, under Section 419(c), not to have been spent for a specified purpose in the year the income is earned, but instead to have been accumulated for use in a later year; (2) whether a regulation adopting the Federal Circuit’s interpretation outstanding in “temporary” form since 1986 should be given deference despite having been issued without the explanation required by 5 U.S.C. § 706(2)(A) and without the prior notice and comment required by 5 U.S.C. § 553; and (3) whether the variance rule in Treasury Regulation § 301.6402-2(b)(1) is jurisdictional, barring the deference argument and precluding application of judicial exceptions to such administrative exhaustion requirements.

DateProceedings and Orders
Jun 20 2012Petition for a writ of certiorari filed. (Response due July 25, 2012)
Jul 17 2012Order extending time to file response to petition to and including August 24, 2012.
Jul 25 2012Brief amicus curiae of National Federation of Independent Business Small Business Legal Center filed.
Aug 15 2012Order further extending time to file response to petition to and including September 24, 2012.
Sep 19 2012Order further extending time to file response to petition to and including October 24, 2012.
Oct 19 2012Order further extending time to file response to petition to and including November 2, 2012.
Nov 2 2012Brief of respondent United States in opposition filed.
Nov 9 2012Reply of petitioner Northrop Corporation Employee Insurance Benefit Plans Master Trust filed.
Nov 13 2012DISTRIBUTED for Conference of November 30, 2012.
Dec 3 2012Petition DENIED.
 
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