Edward Weil and Dorothy Weil v. Commissioner of Internal Revenue

This case presents questions concerning the “collapsible corporation” section of the Internal Revenue Code of 1939 as amended, 26 U.S.C.A. § 117(m). Its somewhat similar counterpart is found in the 1954 Code at 26 U.S.C.A. § 341.

In an opinion by Judge Opper, reported at 28 T.C. 809 and reviewed by the Tax Court, it was unanimously held that the corporation in question, Edsol Realty, Inc., was properly treated as collapsible within the ambit of the section cited. With that opinion we are in full agreement.

However, now on review among their contentions the petitioners raise one, not dealt with…