International Shoe MacHine Corporation v. United States

COFFIN, Chief Judge.

Appellant taxpayer contends that the Commissioner of Internal Revenue erroneously treated income realized from the appellant’s sales of certain shoe machines as “property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business”, 26 U.S.C. § 1231(b)(1)(B), thereby taxing it as ordinary income instead of treating it under the capital gains provisions of the Code, and assessing deficiencies against the taxpayer. After having paid the deficiencies, the appellant filed claims for refunds, which were denied, and then instituted the…