James C. Dudley v. The United States

LARAMORE, Judge.

This is a suit for refund of excise taxes paid pursuant to section 4241(a) (2) of the Internal Revenue Code of 1954. 1 The question presented is whether payment for certain debentures constituted payment of an initiation fee as defined in section 4242(b) of the Internal Revenue Code of 1954. 2

The Winter Club, Inc. (hereinafter referred to as the Club) is a membership corporation which was organized under the laws of New York in April 1957 for the purpose of operating a private skating club during the winter months on premises leased from the Huntington Country Club. The…