Dostal's, Inc. v. Wright, Commr.

The plaintiffs are two Vermont corporations seeking tax relief. The two businesses operate adjoining motor lodges at the Magic Mountain ski area in Londonderry. Thé outstanding stock of Chamois Motor Lodge, Inc., is entirely owned by Dostal’s, Inc., and the same management runs both enterprises, but keeps separate accounting records for each. These two corporations qualify under federal law to file a consolidated U.S. corporation income tax return, form 1120. When, in 1967 and 1968, they followed the same procedure in Vermont, they were met with an assessment for additional tax liability and…