Free Joint Status Report - District Court of Federal Claims - federal

Case 1:05-cv-01180-MMS

Document 20

Filed 09/19/2006

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________ No. 05-1180 T (JUDGE SWEENEY) McKESSON CORPORATION, Plaintiff v. THE UNITED STATES Defendant. ______________ JOINT STATUS REPORT ______________

Pursuant to the Court's Order of September 12, 2006, the parties file the following status report. The parties apologize to the Court for failing, through inadvertence, to file the status report on September 8, 2006, as directed by the Court's Order of May 26, 2006. As reported in the parties' Revised Joint Preliminary Status Report, filed on May 10, 2006, McKesson Corp. had filed refund claims prior to May 7, 2006, with the IRS for taxes paid by McKesson and its subsidiaries for the tax years 2003, 2004, and 2005. The Court will have jurisdiction over these refund claims on or about November 7, 2006 and McKesson will file a First Amended Complaint seeking refunds of these amounts before November 30, 2006. The parties generally agree that taxes remitted on non-distance sensitive long distance service, as described in IRS Notice 2006-50, 2006-25 I.R.B. 1141 (issued May 25, 2006), are refundable, provided the taxpayer has filed timely refund claims with the

Case 1:05-cv-01180-MMS

Document 20

Filed 09/19/2006

Page 2 of 2

IRS and is able to substantiate the amounts claimed. The parties therefore believe that liability is not an issue in this case and once they are able to agree on the amount of tax remitted on non-taxable services, they will be able to reach agreement on a stipulated judgment. McKesson is still assembling the telephone invoices for the tax years 1999-2005 that indicate the amount of tax remitted, and therefore substantiate McKesson's refund claims. While this process has taken longer than counsel for McKesson had hoped, counsel for McKesson hopes to provide counsel for the Government with these invoices by the end of September. Counsel for the Government can then review the invoices to determine the amount of tax remitted. At that time, the parties hope to reach agreement on the proper refund amount and enter into a stipulated judgment accordingly. Respectfully submitted, s/ David U. Fierst Stein, Mitchell & Mezines 1100 Connecticut Avenue, N.W. Suite 1100 Washington, DC 20036 202-737-7777 Sept. 19, 2006 Date Counsel for McKesson Corp. s/ G. Robson Stewart G. Robson Stewart U.S. Department of Justice Tax Division Court of Federal Claims Section 555 4th St., N.W., Room 8118 Washington, DC 20001 202-307-6493 EILEEN J. O'CONNOR Assistant Attorney General DAVID GUSTAFSON Chief Court of Federal Claims Section STEVEN I. FRAHM Assistant Chief s/Steven I. Frahm Of Counsel Sept. 19, 2006 Date Counsel for the United States

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