O.S.C. & Associates, Inc., D.B.A. Olympic Screen Crafts v. Commissioner of Internal Revenue

I respectfully dissent from the well-written Majority Opinion. I believe that an apportionment between the allowed amount for deductible compensation and non-deductible disguised dividend pay*1122ments was required in this case. Although the Majority’s affirmance of the Tax Court creates a de facto apportionment, I believe that the regulations entitled the taxpayer to an apportionment by the Tax Court as part of the Tax Court’s redetermination of the taxpayer’s tax liability.

I

It cannot be doubted that the so-called “incentive compensation plan” developed by the taxpayer was nothing more than a…