James M. Pierce Corp. v. Commissioner
United States Tax Court
1. Held, under these facts the petitioner was not availed of during the taxable years 1954 through 1957 for the purpose of avoiding the income tax with respect to its stockholders by permitting earnings and profits to accumulate instead of being divided or distributed. 2. Petitioner for many years had followed the practice, sanctioned by respondent, of including in its income for each year only the portion of its prepaid subscription income actually earned in that year.
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1. Held, under these facts the petitioner was not availed of during the taxable years 1954 through 1957 for the purpose of avoiding the income tax with respect to its stockholders by permitting earnings and profits to accumulate instead of being divided or distributed. 2. Petitioner for many years had followed the practice, sanctioned by respondent, of including in its income for each year only the portion of its prepaid subscription income actually earned in that year. The unearned portion of its prepaid subscription income was carried to subsequent years in two reserve accounts, a reserve…
1Opinion of the Court
Mulroney, Judge:
The respondent determined deficiencies in petitioner’s income tax as follows:
Taxable year ended June SO— Amount
1954_ $35,129.47
1955_ 44, 242. 53
1956_ 38, 791.48
1957_ 37, 895. 74
For the taxable year 1957 the respondent originally determined a deficiency in the amount of $37,895.74, and in an amendment to his answer the respondent determined an additional deficiency of $307,546.21, making a total deficiency for that taxable year of $345,441.95. The issues remaining for our consideration are (1) whether petitioner was availed of during the taxable years before us for the purpose…
2Cases cited8 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
- West Seattle National Bank of Seattle v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- J. L. Goodman Furniture Co. v. CommissionerUnited States Tax Court · 1948
- West Seattle Nat'l Bank v. CommissionerUnited States Tax Court · 1959
3 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
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- Magic Mart, Inc. v. CommissionerUnited States Tax Court · 1969
- J. Gordon Turnbull, Inc. v. CommissionerUnited States Tax Court · 1963
- James M. Pierce Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1964
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