This document contains corrections to the action on decision nonacquiescing in the decision in Robinson Knife Manufacturing Company and Subsidiaries v. Commissioner, 600 F. 3d 121 (2d Cir. 2010), rev’g T.C. Memo 2009-9, published in 2011-9 I.R.B. Footnote 1 summarizing the Commissioner’s nonacquiescence is corrected to read as follows:
Nonacquiesces to the court’s holding that the sales-based royalties the taxpayer paid for the right to use trademarks on the kitchen tools that it manufactures and sells are not production costs allocable to property produced within the meaning of Treas. Reg. § 1.263A-1(e) and are deductible under § 162 of the Internal Revenue Code.
The principal author of this announcement is John Roman Faron of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this announcement, contact Mr. Faron at (202) 622-4930 (not a toll-free call).
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