Koppers Co. v. Commissioner
United States Tax Court
Petitioner and 5 other affiliates were severally liable for a deficiency in tax under a consolidated income tax return filed in 1930 by 66 affiliates. In the taxable year 1940 petitioner paid the major portion of the deficiency and interest. Petitioner filed a separate return for 1940 and claimed the full amount of the interest payment as a deduction. Petitioner kept its books on the accrual basis.
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Petitioner and 5 other affiliates were severally liable for a deficiency in tax under a consolidated income tax return filed in 1930 by 66 affiliates. In the taxable year 1940 petitioner paid the major portion of the deficiency and interest. Petitioner filed a separate return for 1940 and claimed the full amount of the interest payment as a deduction. Petitioner kept its books on the accrual basis. The other affiliates were not shown to be insolvent or otherwise unable to pay their proportionate share of the deficiency. Held, to the extent petitioner paid interest on more than its…
1Opinion of the Court
OPINION.
Harron, Judge:
Respondent determined that petitioner was not entitled to a deduction in 1940 for interest in the amount of $290,659.24 paid in that year on the 1930 income tax deficiency of the consolidated group. In 1930 petitioner and other affiliates filed a consolidated income tax return, and, in accordance with section 141 of the Revenue Act of 1928, executed consents to be bound by the regulations relating to consolidated returns. From 1934 on, after the privilege of filing consolidated returns was denied to corporations other than railroads, and during the taxable year,…
2Cases cited2 opinions
- Phillips-Jones Corp. v. ParmleySupreme Court of the United States · 1937
- Jolson v. CommissionerUnited States Tax Court · 1944
3Cited by5 opinions
- Globe Products Corp. v. CommissionerUnited States Tax Court · 1979
- Globe Products Corp. v. CommissionerUnited States Tax Court · 1979
- Jacqueline, Inc. v. CommissionerUnited States Tax Court · 1977
- Koppers Co. v. CommissionerUnited States Tax Court · 1947
- Koppers Co. v. CommissionerUnited States Tax Court · 1948