Latchis Theatres of Keene, Inc. v. Commissioner
United States Tax Court
Section 102 -- Improper Accumulation of Corporate Surplus. -- The taxpayer, engaged in the operation of theatres owned by another corporation in a family-owned group of businesses, has not shown reasonable need for its accumulated earnings of the taxable year.
1Opinion of the Court
OPINION.
Murdock, Judge:
The only ground on which the Commissioner seeks to support his determination of surtax under section 102 is that the earnings or profits of each petitioner were permitted to accumulate in 1946 beyond the reasonable needs of the business. Section 102 (c). Keene accumulated and added to its surplus during 1946 earnings of $16,645.82, and Claremont accumulated and added to its surplus during 1946 earnings of $7,704.13. The petitioners attempt to justify those accumulations on three grounds: (1) “The demands for payments on mortgages on the theatres in which the petitioners…
2Cases cited5 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Helvering v. Chicago Stock Yards Co.Supreme Court of the United States · 1943
- United Business Corporation v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1933
- Whitney Chain & Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Application of WilliamsCourt of Customs and Patent Appeals · 1951
3Cited by27 opinions
- Pelton Steel Casting Co. v. CommissionerUnited States Tax Court · 1957
- American Metal Products Corp. v. CommissionerUnited States Tax Court · 1960
- Factories Inv. Corp. v. CommissionerUnited States Tax Court · 1963
- Chaney & Hope, Inc. v. CommissionerUnited States Tax Court · 1983
- Powder Mill Realty Trust v. CommissionerUnited States Tax Court · 1973
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