Dri-Powr Distributors Asso. Trust v. Commissioner
United States Tax Court
Dri-Powr Co., a sole proprietorship which was subsequently incorporated, was in the business of manufacturing various petroleum products and selling such products to independent distributors for resale to gas station owners. The company had a long-standing policy requiring its distributors (who were independent contractors) to pay their own freight, advertising, and product promotion costs.
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Dri-Powr Co., a sole proprietorship which was subsequently incorporated, was in the business of manufacturing various petroleum products and selling such products to independent distributors for resale to gas station owners. The company had a long-standing policy requiring its distributors (who were independent contractors) to pay their own freight, advertising, and product promotion costs. The Dri-Powr distributors formed their own association and set up a trust fund in which their contributions were pooled and expended for various authorized purposes (i.e., freight, advertising, and unified…
1Opinion of the Court
OPINION
Issue 1. Taxability of the Trust Contributions to Wynn
Respondent argues that the distributors’ contributions to the trust during the period from January 1,1962, to April 1, 1963, are taxable to Wynn as “Gross income derived from business” within the meaning of section 61 (a) (2) .2 Wynn contends that, if the trust funds constitute income to anyone, then they are income to the trust rather than himself.
In support of his position that the trust contributions are taxable to Wynn, respondent mounts a two-pronged offensive. First, he contends that Wynn’s sole proprietorship received the…
2Cases cited18 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Healy v. CommissionerSupreme Court of the United States · 1953
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- Krim-Ko Corp. v. CommissionerUnited States Tax Court · 1951
- Lefrooth v. PrenticeCalifornia Supreme Court · 1927
13 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Park Place, Inc. v. CommissionerUnited States Tax Court · 1972
- Ford Dealers Advertising Fund, Inc. v. CommissionerUnited States Tax Court · 1971
- Florists' Transworld Delivery Ass'n v. CommissionerUnited States Tax Court · 1976
- New York State Ass'n of Real Estate Boards Group Insurance Fund v. CommissionerUnited States Tax Court · 1970
12 more not listed; retrieve them via the Exa API.