Vogel Fertilizer Co. v. United States

The issue in this case is the validity of Treas. Reg. § 1.1563-1(a)(3) (1972), which defines the term "brother-sister controlled group” for the purposes of the limited surtax exemption available to multiple corporations. Plaintiff has filed suit for the refund of income taxes for the taxable years ended November 30,1973,1974, and 1975. The case is now before the court on the parties’ cross-motions for summary judgment. We hold that the regulation is an overly expansive interpretation of I.R.C. § 1563(a)(2) and that plaintiff is not a member of a "brother-sister controlled group” as that term…