Tallman Tool & Machine Corp. v. Commissioner
United States Tax Court
Profit-Sharing Trust -- Validity of Trust. -- The petitioner, an accrual basis taxpayer, executed a profit-sharing plan and trust, and delivered its $ 20,000 demand promissory note to the trust on September 30, 1952, the last day of its fiscal year. $ 22,520 cash was paid within the following 60-day period allowed by the statute for actual payment, being payment of the note and an additional amount to fulfill the petitioner's obligation under the plan.
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Profit-Sharing Trust -- Validity of Trust. -- The petitioner, an accrual basis taxpayer, executed a profit-sharing plan and trust, and delivered its $ 20,000 demand promissory note to the trust on September 30, 1952, the last day of its fiscal year. $ 22,520 cash was paid within the following 60-day period allowed by the statute for actual payment, being payment of the note and an additional amount to fulfill the petitioner's obligation under the plan. The cash payment within the grace period and the note, which under New York law was issued for valuable consideration, provided the trust with…
1Opinion of the Court
OPINION.
MtXRDOCK, Judge:
The Commissioner determined a deficiency of $15,731.20 in the petitioner’s income tax for its fiscal year ended September 30, 1952. The petitioner contests the Commissioner’s dis-allowance of $22,520 claimed as a deduction in the taxable year in question as a contribution to a profit-sharing plan and trust.
The facts have been stipulated.
The petitioner is a New York corporation doing business in Eochester, New York. It filed its Federal income tax returns on an accrual basis and has a fiscal year ending September 30.
The profit-sharing plan and trust was set forth in an…
2Cases cited2 opinions
- 555, Inc. v. CommissionerUnited States Tax Court · 1950
- Blanco v. VelezNew York Court of Appeals · 1946
3Cited by12 opinions
- West Virginia Steel Corp. v. CommissionerUnited States Tax Court · 1960
- Barrett Timber & Dunnage Corp. v. CommissionerUnited States Tax Court · 1957
- Thomas Trebotich and Jeanne Trebotich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
- Catawba Industrial Rubber Co. v. CommissionerUnited States Tax Court · 1975
- Trebotich v. CommissionerUnited States Tax Court · 1971
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