Comptroller v. FC-GEN Operations Investments LLCAnnotate this Case
The Court of Appeals affirmed the reversal of the decision of the Comptroller of Maryland denying a pass-through entity's claim for a refund of estimated tax payments it made during the 2012 tax year when the pass-through entity determined that it had no tax liability, holding that there was no error.
Under Maryland laws, FC-GEN Operations Investments, LLC (FC-GEN) met the definition of "pass-through entity." Based on its projected 2012 income, FC-GEN made quarterly estimated tax payments. FC-GEN sought a refund of its estimated payments after determining that it had a taxable loss attributable to Maryland for the 2012 tax year. The Comptroller denied the refund request, concluding that the statute of limitations had expired. The Tax Court reversed. The appellate court affirmed. The Court of Appeals granted certiorari and held (1) in connection with judicial review of a Tax Court decision in which a party alleges an error of law, where the reviewing court determines that it is appropriate to give a degree of deference to an agency’s interpretation of tax laws, the agency to whom deference is owed is the Comptroller, as the agency responsible for administering the tax laws and promulgating regulations for that purpose, not the Tax Court; and (2) FC-GEN was a claimant that was entitled to a refund.