Babst Services, Inc. v. Commissioner
United States Tax Court
Held: Eligibility requirements of taxpayer corporation's profit-sharing plan operated so as to discriminate in favor of officers, shareholders, and highly compensated employees within the meaning of sec. 401(a)(3)(B). Accordingly, the Commissioner's disallowance of a deduction for the corporation's contributions to the plan's trust is sustained.
1Opinion of the Court
Raum, Judge:
The Commissioner determined a deficiency of $5,458.33 in petitioner’s Federal corporate income tax for the fiscal year ended May 31, 1971. At issue is the deducti-bility of $11,325 petitioner contributed to a profit-sharing plan established for its employees.
FINDINGS OF FACT
The parties have filed a stipulation and supplemental stipulation of facts, along with exhibits, which are incorporated herein by this reference.
Petitioner Babst Services, Inc., was incorporated under the laws of the State of Louisiana on June 23, 1969. At the time it filed the petition herein its principal…
2Cases cited17 opinions
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