Pechtel v. United States
United States Tax Court
1. Held, the petitioners' partnership and a corporation, which was owned and operated by two of the partners, were under common control and since both enterprises were subcontractors during the fiscal year here involved and since their combined renegotiable sales exceeded $ 500,000, petitioners' partnership profits are subject to renegotiation. 2. Held, that on the basis of the facts presented petitioners received excessive profits from the partnership in the amount herein…
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1. Held, the petitioners' partnership and a corporation, which was owned and operated by two of the partners, were under common control and since both enterprises were subcontractors during the fiscal year here involved and since their combined renegotiable sales exceeded $ 500,000, petitioners' partnership profits are subject to renegotiation. 2. Held, that on the basis of the facts presented petitioners received excessive profits from the partnership in the amount herein determined.
1Opinion of the Court
OPINION.
Hill, Judge:
The first issue concerns the question whether some form of common control existed between the partnership, Island Machine Tool Company, and the corporation, Island Stamping Company, Inc., so that the sales of each (about $400,000 for each company) may be combined to equal sales in excess of $500,000, thereby subjecting the partnership to renegotiation.1 The question whether or not any two or more business ventures are under common control is a question of fact which must be determined on the basis of all the evidence presented.2
Petitioners contend that their partnership…
2Cases cited4 opinions
- Stein Bros. Mfg. Co. v. Secretary of WarUnited States Tax Court · 1946
- Cohen v. Secretary of WarUnited States Tax Court · 1946
- Grob Bros. v. Secretary of WarUnited States Tax Court · 1947
- Larrabee v. StimsonUnited States Tax Court · 1951
3Cited by8 opinions
- Shultz v. Mack Farland & Sons Roofing Co.Court of Appeals for the Fifth Circuit · 1969
- Shultz v. Mack Farland & Sons Roofing Co.Court of Appeals for the Fifth Circuit · 1969
- Haas v. United StatesUnited States Tax Court · 1955
- Zarkin v. United StatesUnited States Tax Court · 1958
- Haas v. United StatesUnited States Tax Court · 1955
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