ELI LILLY & CO. v. C.I.R.

Nos. 86-2911, 86-3116.

856 F.2d 855 (1988)

ELI LILLY & COMPANY and Subsidiaries, Petitioners-Appellants, Cross-Appellees, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee, Cross-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided August 31, 1988.

As modified October 27, 1988.


Attorney(s) appearing for the Case

Thomas M. Haderlein, Baker & McKenzie, Chicago, Ill., for petitioners-appellants/cross-appellees.

Teresa E. McLaughlin, Tax Div., Dept. of Justice, Washington, D.C., for respondent-appellee/cross-appellant.

Before WOOD, Jr. and CUDAHY, Circuit Judges, and WILL, Senior District Judge.


CUDAHY, Circuit Judge.

In 1976, the Commissioner of Internal Revenue ("the Commissioner") served a notice of deficiency on Eli Lilly and Company ("Lilly") assessing tax deficiencies against Lilly for the years 1971 through 1973. The bulk of the disputed total amount, roughly $34 million under the Commissioner's revised calculations, derives from the Commissioner's reallocation of income to Lilly from Lilly's subsidiary Eli Lilly and Company, Inc. ("Lilly P.R."). Lilly...

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