United Business Corp. of Am. v. Commissioner
United States Board of Tax Appeals
1. Petitioner corporation held liable to tax for 1921 under section 220 of the Revenue Act of 1921. 2. If it is clear that a corporation is availed of for the purpose of preventing the imposition of surtax upon its stockholders through the medium of permitting gains and profits to be accumulated instead of distributed, it falls within section 220, whether the accumulations be large or small. Accumulations in excess of needs are evidence of purpose but not necessary.
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1. Petitioner corporation held liable to tax for 1921 under section 220 of the Revenue Act of 1921. 2. If it is clear that a corporation is availed of for the purpose of preventing the imposition of surtax upon its stockholders through the medium of permitting gains and profits to be accumulated instead of distributed, it falls within section 220, whether the accumulations be large or small. Accumulations in excess of needs are evidence of purpose but not necessary. The purpose may appear from other facts. 3. No return or statement is required to be filed under section 220 before the…
1Opinion of the Court
*825OPINION.
Phillips:
In addition to oral testimony the parties have submitted a voluminous stipulation. A substantial part of the stipulation is of evidence which it seems unnecessary to detail in formal findings of fact, the substance thereof or conclusion reached therefrom being stated. These proceedings involve the construction and application of sections 220 of the Revenue Act of 1918 and of the Revenue Act of 1921. This section of the 1918 Act reads :
Sec. 220. That if any corporation, however created or organized, is formed or availed of for the purpose of preventing the imposition of the…
2Cited by66 opinions
- Badger Materials, Inc. v. CommissionerUnited States Tax Court · 1963
- World Pub. Co. v. United StatesCourt of Appeals for the Tenth Circuit · 1948
- Schwager v. CommissionerUnited States Tax Court · 1975
- Dunn v. CommissionerUnited States Tax Court · 1964
- Given v. CommissionerCourt of Appeals for the Eighth Circuit · 1956
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