Florenz R. Ourisman and Betty Joan Ourisman v. Commissioner of Internal Revenue

WIDENER, Circuit Judge.

The Commissioner of Internal Revenue appeals the Tax Court’s determination that a corporation was a true, nontaxable, agent of its principal, a partnership, even though the corporation was wholly owned and controlled by the partnership. Ourisman v. Commissioner, 82 T.C. 171 (1984). We reverse because we are of opinion that the Tax Court erred in finding that the corporation was the true nontaxable agent of the partnership under the test for agency status established by the Supreme Court in National Carbide v. Commissioner, 336 U.S. 422, 69 S.Ct. 726, 93 L.Ed. 779 (1949).