Container Service Company v. United States

Taxpayer, Container Service Company, seeks a reversal of the District Court’s dismissal of its tax refund suit. We affirm.

The facts are detailed in the District Court’s opinion. 345 F.Supp. 235 (S.D. Ohio 1972). In 1968 the taxpayer established a profit sharing plan for its salaried employees and claims that its contributions made to the profit-sharing trust were tax deductible under 26 U.S.C. § 404(a). Employer contributions to a profit-sharing trust are tax deductible only if the profit-sharing plan is qualified under 26 U.S.C. § 401(a).

The employee coverage requirements are set out in §…