Leonard L. Grigsby, et al. v. United States

The questions underlying this petition are:

1. Whether, under a proper application of law, an administrative agency finding should be given the presumption of correctness when it is uncontroverted that the agency conducted no independent review prior to filing a lawsuit against a taxpayer, such that a Court applies such a presumption resulting in the Grigsbys being prohibited from presenting their evidence, which included both documents and testimony, to the triers of fact.

2. Whether the petitioners had the burden of proof on summary judgment motion despite the government being both plaintiff and the movant.

3. Whether the existence of a fixed fee contract to deliver a flood control structure, constituted a payment for research activities or an end product. Cajun Industries, a highly skilled construction S corporation, of which the taxpayers are shareholders, and which handles large scale industrial projects, built four structures, two flood control systems in Louisiana, and structures for two refineries to which led to improved and increased refining capacity. The tax credits which flowed from Cajun Industries’ work resulted in a tax refund for its shareholders, the Grigsbys. After the Grigsby’s receipt of the tax refund, the Internal Revenue Services (“IRS”), without