H. Fort Flowers Foundation, Inc. v. Commissioner
United States Tax Court
Petitioner, a charitable private foundation, had income in 1970, 1971, 1972, 1973, and 1974. None of this income was distributed for charitable purposes until 1975. Instead, petitioner on its books applied the income to restore its corpus which had been depleted by a large gift to Vanderbilt University in 1965. This treatment had been sanctioned by an auditing revenue agent in 1972. However, when it was challenged on a later audit, petitioner made an election under sec.…
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Petitioner, a charitable private foundation, had income in 1970, 1971, 1972, 1973, and 1974. None of this income was distributed for charitable purposes until 1975. Instead, petitioner on its books applied the income to restore its corpus which had been depleted by a large gift to Vanderbilt University in 1965. This treatment had been sanctioned by an auditing revenue agent in 1972. However, when it was challenged on a later audit, petitioner made an election under sec. 4942(h)(2), I.R.C. 1954, to have its 1975 qualifying distribution treated as made out of the earlier years' undistributed…
1Opinion of the Court
Hall, Judge:
Respondent determined deficiencies in initial excise tax under section 4942(a)1 and additional excise tax under section 4942(b) for failure to distribute income, plus additions to the tax under section 6651(a)(1), for petitioner as follows:
Initial tax Additional tax Addition to tax
Year sec. 1912(a) sec. 1912(b) sec. 6651(a)(1)
1972 $6,200.07 $41,333.83 $1,550.02
1973 7,774.29 10,494.74 1,943.57
1974 10,184.54 16,068.38 2,546.13
In 1965, petitioner made a large charitable contribution to a university. In order to make this contribution, petitioner used a “loan” from its corpus to its…
2Cases cited5 opinions
- Darling v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1931
- Adams v. CommissionerUnited States Tax Court · 1979
- Martin's Auto Trimming, Inc., a Corporation v. Robert A. Riddell, Director of Internal Revenue Service and United States of AmericaCourt of Appeals for the Ninth Circuit · 1960
- Henry v. BurnetCourt of Appeals for the D.C. Circuit · 1931
- Henry v. CommissionerUnited States Board of Tax Appeals · 1927
3Cited by14 opinions
- Howell v. CommissionerUnited States Tax Court · 1981
- Barth Foundation v. CommissionerUnited States Tax Court · 1981
- Estate of Mapes v. Comm'rUnited States Tax Court · 1992
- Trans-Serve, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 2008
- Brown v. CommissionerUnited States Tax Court · 1989
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