Lincoln Electric Co. Employees' Profit-Sharing Trust v. Commissioner
United States Tax Court
In December, 1941, the Lincoln Electric Co., pursuant to a resolution of its board of directors, established a trust for the benefit of 890 of its employees, which included most of its employees, and paid $ 1,000,000 to a trustee for the purposes of the trust. There was no provision for any future contributions to the trust and no formula for the sharing of any future profits and no further contribution was made.
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In December, 1941, the Lincoln Electric Co., pursuant to a resolution of its board of directors, established a trust for the benefit of 890 of its employees, which included most of its employees, and paid $ 1,000,000 to a trustee for the purposes of the trust. There was no provision for any future contributions to the trust and no formula for the sharing of any future profits and no further contribution was made. The trust was to continue for a term of 10 years, unless distribution of all the share interests pursuant to its terms had been fully completed prior thereto. Held, (1) the trust was…
1Opinion of the Court
OPINION.
Black, Judge:
Tlie principal question for decision herein is whether the Lincoln .Electric Company Employees’ Profit-Sharing Trust was an exempt trust within the meaning of section 165 (a) of the Internal Kevenue Code.1 Section 165 (a) requires that the trust, in order to be exempt, must be for the purpose of “forming part of a stock bonus, pension, or profit-sharing plan.”
Petitioner contends that the trust complies with the requirements of section 165 (a). It argues that it was the intent of Congress to include as a “plan” within the meaning of section 165 (a) every type of…
2Cases cited9 opinions
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- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Brewster v. GageSupreme Court of the United States · 1930
- Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
- Lincoln Electric Co. v. CommissionerUnited States Tax Court · 1946
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