Factories Inv. Corp. v. Commissioner
United States Tax Court
Held, that petitioner was availed of for the purpose of avoiding the income tax with respect to its shareholders, by permitting its earnings and profits to accumulate instead of being divided or distributed, for each of the taxable years here involved. Respondent's imposition of the accumulated earnings tax under section 531 of of the 1954 Code is therefore approved.
1Opinion of the Court
PxeRCEj Judge:
The respondent determined a deficiency in the income tax of the petitioner corporation for each of its fiscal years ended June 30, 1958 and 1959, in the respective amounts of $6,432.05 and $6,474.52. The sole issue is whether petitioner was availed of during said fiscal years for the purpose of avoiding the income tax with respect to its shareholders, by permitting earnings and profits to accumulate instead of being divided or distributed. If the petitioner was so availed of, then the respondent was justified in his imposition of the accumulated earnings tax under section 531 of…
2Cases cited4 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Helvering v. Chicago Stock Yards Co.Supreme Court of the United States · 1943
- Latchis Theatres of Keene, Inc. v. CommissionerUnited States Tax Court · 1953
- Stanton Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
3Cited by16 opinions
- John P. Scripps Newspapers v. CommissionerUnited States Tax Court · 1965
- Bremerton Sun Publishing Co. v. CommissionerUnited States Tax Court · 1965
- Atlantic Properties, Inc. v. CommissionerUnited States Tax Court · 1974
- The Shaw-Walker Company, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1968
- Chaney & Hope, Inc. v. CommissionerUnited States Tax Court · 1983
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