Seiners Asso. v. Commissioner
United States Tax Court
Petitioner was a nonexempt cooperative which sold fishing gear, marine fuel, and insurance primarily to its members. In order to secure a deduction under sec. 1382(b), I.R.C. 1954, petitioner for the years ended Nov. 30, 1966, and Nov. 30, 1967, was required to make qualifying distributions of patronage dividends prior to Aug. 15, 1967, and Aug. 15, 1968, respectively.
Read the full summary
Petitioner was a nonexempt cooperative which sold fishing gear, marine fuel, and insurance primarily to its members. In order to secure a deduction under sec. 1382(b), I.R.C. 1954, petitioner for the years ended Nov. 30, 1966, and Nov. 30, 1967, was required to make qualifying distributions of patronage dividends prior to Aug. 15, 1967, and Aug. 15, 1968, respectively. Prior to the end of the required payment period, petitioner distributed to its members certain financial statements and receipts for goods purchased. These documents together could be used by the members to determine their…
1Opinion of the Court
Fat, Judge:
Respondent determined deficiencies in the Federal income taxes of petitioner as follows:
Taxable year ended Deficiency
Nov. 30, 1965_ $527.00
Nov. 30, 1966_ 1,360.86
Nov. 30, 1967_3, 721.10
The issue for decision is whether petitioner is entitled to deduct as patronage dividends under section 1382(b)(1) or 1382(b)(2)1 amounts of money and scrip distributed to its members with respect to the years ended November 30, 1966, and November 30, 1967.2
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by…
2Cases cited15 opinions
- May v. HeinerSupreme Court of the United States · 1930
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Long Poultry Farms, Incorporated v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
- Commissioner of Internal Revenue v. B. A. CarpenterCourt of Appeals for the Fifth Circuit · 1955
- McCamant v. CommissionerUnited States Tax Court · 1959
10 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Independent Cooperative Milk Producers Asso. v. CommissionerUnited States Tax Court · 1981
- Stevenson Co-Ply, Inc. v. CommissionerUnited States Tax Court · 1981
- Ag Processing, Inc a cooperative and Subsidiaries v. CommissionerUnited States Tax Court · 2019
- Independent Cooperative Milk Producers Asso. v. CommissionerUnited States Tax Court · 1981
- Seiners Asso. v. CommissionerUnited States Tax Court · 1972
1 more not listed; retrieve them via the Exa API.