Kennedy v. Commissioner
United States Tax Court
Cherokee, a closely held warehousing corporation, had paid its general manager, James, under an incentive compensation arrangement since its incorporation in 1951. James, a trust for his sister's benefit, and his father held all of Cherokee's stock in the respective portions of 8 percent, 7 percent, and 85 percent. From 1951 to 1964, James received approximately 26 percent of Cherokee's net profits.
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Cherokee, a closely held warehousing corporation, had paid its general manager, James, under an incentive compensation arrangement since its incorporation in 1951. James, a trust for his sister's benefit, and his father held all of Cherokee's stock in the respective portions of 8 percent, 7 percent, and 85 percent. From 1951 to 1964, James received approximately 26 percent of Cherokee's net profits. During the years after the only revision in the compensation arrangement in 1964, including the years in issue, James received approximately 34 percent of Cherokee's net profits. While Cherokee…
1Opinion of the Court
Bruce, Judge:
Respondent, in two statutory notices dated June 30, 1977, determined deficiencies in the Federal income taxes of the petitioners as follows:
Taxable Docket No. Petitioners year ending Deficiency
9849-77 James D. Kennedy, Jr., and Dorothy H. Kennedy . 12/31/72 $9,239.91
12/31/73 14,822.30
9850-77 Cherokee Warehouses, Inc. 7/31/73 108,271.53
7/31/74 87,862.04
Due to concessions by both petitioners and respondent,1 the only issues remaining for our decision are (1) whether payments by petitioner Cherokee Warehouses, Inc. (hereinafter Cherokee), to petitioner James D. Kennedy, Jr.…
2Cases cited39 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Meneguzzo v. CommissionerUnited States Tax Court · 1965
- Mayson Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
34 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- Home Interiors & Gifts, Inc. v. CommissionerUnited States Tax Court · 1980
- King's Court Mobile Home Park, Inc. v. CommissionerUnited States Tax Court · 1992
- Estate of Wallace v. CommissionerUnited States Tax Court · 1990
- Centel Communications Co. v. CommissionerUnited States Tax Court · 1989
- James D. Kennedy, Jr. And Dorothy H. Kennedy, and Cherokee Warehouses, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1982
36 more not listed; retrieve them via the Exa API.