J & W FENCE SUPPLY COMPANY, INC. v. U.S.

Nos. 99-2132, 99-3737 and 00-1247.

230 F.3d 896 (2000)

J & W FENCE SUPPLY COMPANY, INC., John B. Vidrine, and Cressville Vidrine, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided October 11, 2000.


Attorney(s) appearing for the Case

Richard N. Bell (argued), Cohen & Malad, Indianapolis, IN, for Plaintiffs-Appellants.

Sue Hendricks Bailey, Office of the United States Attorney, Indianapolis, IN, Kenneth L. Greene, John A. Nolet (argued), Department of Justice, Tax Division, Appellate Section, Washington, DC, for Defendant-Appellee.

Before COFFEY, EASTERBROOK, and EVANS, Circuit Judges.


EASTERBROOK, Circuit Judge.

On its tax return for 1992 J & W Fence Supply Company took a deduction of almost $1 million for a bad debt: a loan to Cherry Point Forest Products, one of J & W's principal suppliers of raw materials (and 49% of whose stock was owned by John Vidrine, who also owns 100% of J & W's stock). During 1992 Cherry Point entered receivership in Washington, and J & W contended that it was unlikely to see much if any of the money it...

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