Delta Metalforming Co., Inc. v. Commissioner of Internal Revenue

JOHN R. BROWN, Circuit Judge:

Today we decide an issue of corporate income tax reaching a result contrary to majorities of the Second, Fourth and Eighth Circuit Courts of Appeal. Unlike our respected brethren and sisters, we hold with the Tax Court, the persuasive dissent of Judge William Webster, and more recently the decision of the Court of Claims, that a person must own stock in each member of an alleged brother-sister controlled group to satisfy the 80% test under § 1563(a)(2)(A) and so be denied its own separate surtax exemption.

I

The facts are not in dispute. The taxpayer company, Delta…