Nestle Purina Petcare Company v. Commissioner of Internal Revenue

Issue: (1) Whether a deduction for dividends paid to withdrawing participants of an Employee Stock Ownership Plan, as authorized by § 404(k) of the Internal Revenue Code, is precluded by § 162(k)(1), which disallows an otherwise allowable deduction “for any amount paid or incurred in connection with the redemption of [a corporation’s] stock”; (2) whether deference is owed by one circuit to the federal tax decisions of other circuits; and (3) whether the Eighth Circuit erred in holding that petitioner’s deductions for “applicable dividends” paid under § 404(k) were barred by § 162(k)(1), where § 162(k)(2)(A)(iii) expressly provides that the bar set forth in §162(k)(1) shall not apply to “deductions for dividends paid (within the meaning of Section 561).”

Briefs and Documents

Certiorari-stage documents

• Opinion below (8th Circuit)
• Petition for certiorari
• Brief in opposition
• Petitioner's reply