Burroughs Bldg. Material Co. v. Commissioner
United States Board of Tax Appeals
Amounts paid by a taxpayer engaged in the building-material business, on account of fines, court costs and attorneys' fees as the result of an indictment under a state statute which prohibited certain price-fixing agreements, are not deductible as ordinary and necessary expenses of carrying on the taxpayer's business.
1Opinion of the Court
OPINION.
Littleton :
The Commissioner determined a deficiency of $3,591.24 income and profits tax for 1921. This resulted from the disallowance of deductions taken by petitioner of the amount of fines imposed by the State of blew York upon petitioner and its president for criminal violations, and the cost of legal services in defense thereof.
The facts are embodied in the following agreed statement:
1. The petitioner is a New York Corporation, with its principal office at Johnson Avenue and Newton Creek, Brooklyn, New York, and during the taxable year 1921 was engaged in the business of dealing…
2Cases cited1 opinion
- United States v. SullivanSupreme Court of the United States · 1927
3Cited by15 opinions
- Riss & Co. v. CommissionerUnited States Tax Court · 1964
- Walter F. Tellier and Evelyn H. Tellier v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Wagner v. CommissionerUnited States Board of Tax Appeals · 1934
- Graham v. CommissionerUnited States Tax Court · 1963
- Matula v. CommissionerUnited States Tax Court · 1963
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