Penn Mut. Indem. Co. v. Commissioner
United States Tax Court
Held, the tax imposed upon mutual insurance companies (other than life or marine), computed under section 207(a)(2), I.R.C. 1939, as amended, is constitutional. The only possible objection to its validity is that it is a "direct" tax which must be apportioned according to population. The tax is not a "direct" tax within the meaning of the Constitution, and the fact that underwriting losses are not deductible is constitutionally irrelevant.
1Opinion of the Court
OPINION.
Raum, Judge:
Respondent determined a deficiency in the 1952 income tax liability of the Penn Mutual Indemnity Company in the amount of $12,566.76. The sole issue is whether section 207(a)(2) of the Internal Revenue Code of 1939 is constitutional as here applied. The facts have been stipulated.
Francis R. Smith, the Insurance Commissioner of the Commonwealth of Pennsylvania, is the statutory receiver of Penn Mutual Indemnity Company and as such, successor in right, title, and interest to its assets and liabilities.
The company was incorporated in 1929 under the laws of Pennsylvania and…
2Cases cited42 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Flint v. Stone Tracy Co.Supreme Court of the United States · 1911
- Ogden v. SaundersSupreme Court of the United States · 1827
- Brushaber v. Union Pacific RailroadSupreme Court of the United States · 1916
- Steward MacHine Co. v. DavisSupreme Court of the United States · 1937
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3Cited by56 opinions
- Roberts v. CommissionerUnited States Tax Court · 1974
- Shomaker v. CommissionerUnited States Tax Court · 1962
- Dougherty v. CommissionerUnited States Tax Court · 1973
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
- Miriam Sakol v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1978
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