Justia Government Contracts Opinion Summaries

Morpho, a California-based corporation that designs and builds explosives and other threat detection technology, contracted with the FAA on behalf of its then-newly established TSA, to supply its Explosive Detection System (EDS) to United States airports. Morpho subsequently sought an increase of the contract price to compensate for state assessments as "after-imposed taxes" pursuant to Clause 3.4.2-7(c) of the Acquisition Management System (AMS). The court denied Morpho's petition for review, agreeing with the TSA's rejection of Morpho's claim on the ground that the taxes at issue did not satisfy the after-imposed tax exception's precise terms. View "Morpho Detection, Inc. v. TSA" on Justia Law

Taxpayer was awarded and received a net $5.25 million qui tam payment from the government as a "relator" in two lawsuits settled against a government contractor under the False Claims Act (FCA), 31 U.S.C. 3729-3733. Taxpayer asserted that the award was not taxable. The court held that the Tax Court correctly concluded that the entire qui tam payment award to taxpayer under the FCA was includable in gross income and that taxpayer was liable for the I.R.C. 6662(a) accuracy-related penalty. View "Campbell v. Commissioner of Internal Revenue" on Justia Law