American Box Shook Export Asso. v. Commissioner
United States Tax Court
The petitioner was organized under the general corporation laws of California. Neither its articles of incorporation nor its bylaws nor any contract required that amounts received in excess of cost be distributed to its members on a patronage basis. No amounts were distributable except upon action by the board of directors.
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The petitioner was organized under the general corporation laws of California. Neither its articles of incorporation nor its bylaws nor any contract required that amounts received in excess of cost be distributed to its members on a patronage basis. No amounts were distributable except upon action by the board of directors. Held, (1) petitioner is not a true cooperative and is subject to tax upon its income; (2) petitioner is not entitled to a deduction for amounts actually distributed during the year.
1Opinion of the Court
OPINION.
Van Fossan, Judge'.
The fundamental issue before us is whether the petitioner had any taxable income of its own or whether its income was actually, at all times, the income of its members. In the event our determination of this issue is adverse to the petitioner, a further issue arises, namely, whether the petitioner is entitled to a deduction in the amount of the distributions made to its members on May 28,1941.
There may be some question whether the first stated issue was properly raised in the pleadings. Although the respondent directed attention to the alleged defect at the hearing,…
2Cited by6 opinions
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Southwest Hardware Co. v. CommissionerUnited States Tax Court · 1955
- American Box Shook Export Ass'n v. Commissioner of IRCourt of Appeals for the Ninth Circuit · 1946
- American Box Shook Export Asso. v. CommissionerUnited States Tax Court · 1945
- Southwest Hardware Co. v. CommissionerUnited States Tax Court · 1955
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