Van Roekel Farms, Inc. v. Commissioner

Van Roekel Farms, Inc. (Taxpayer) appeals the tax court’s ruling upholding the Commissioner of Internal Revenue’s decision that Taxpayer’s Employee Stock Ownership Plan did not qualify under 26 U.S.C. § 401(a), and thus, the Taxpayer’s related Employee Stock Ownership Trust was not exempt from income tax. Contrary to Taxpayer’s argument that it paid “management fees” to its founder, Eugene Van Roekel, as an employee and not as an independent contractor, the tax court’s order notes Taxpayer’s concession that Van Roekel was an independent contractor and the scant record before this court does…