Bessemer Securities Corporation v. The United States

DAVIS, Judge.

The plaintiff, a personal holding company during the years here involved, seeks to recover an alleged overpayment of personal holding company surtax for 1951 in the amount of $646,417.92, together with interest. Section 500 of the Internal Revenue Code of 1939 imposes a heavy surtax, in addition to the income taxes imposed by Chapter 1, upon the undistributed subchapter A net income 1 of every personal holding company. This tax was designed to discourage use of the so-called “incorporated pocketbook” to avoid the graduated surtax rates imposed on individuals by Section 12, by…