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Hughes Properties, Inc.: Court Case Study

Decent Essays

The taxpayer and Appellant in this court case is Hughes Properties, Inc., owner of Harolds Club which is a gambling casino located in Reno, Nevada. In this case, the United States (Appellant) is challenging the judgment of the United States Claims Court that Hughes Properties, Inc. should be awarded a refund of $433,441.88 in federal income taxes plus assessed interest for the fiscal years ending June 30 in 1973-75 and 1977. The relevant facts that were presented in this case are that Hughes Properties, Inc. an accrual based accounting corporation, runs several “progressive” slot machines which, like regular slot machines, pay fixed amounts of money when a certain combination of symbols appear. However, progressive machines also pay a progressive

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