Farmers Cooperative Co. v. Commissioner
United States Tax Court
Petitioners were tax-exempt farmers' cooperatives that had been granted exempt status in 1929 and 1956. Each petitioner was audited for 2 years during the period 1977 through 1980. Respondent determined that both petitioners failed to meet the requirement of sec. 521, I.R.C. 1954, that substantially all of the capital stock be owned by producers who market products or purchase supplies and equipment through the cooperatives.
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Petitioners were tax-exempt farmers' cooperatives that had been granted exempt status in 1929 and 1956. Each petitioner was audited for 2 years during the period 1977 through 1980. Respondent determined that both petitioners failed to meet the requirement of sec. 521, I.R.C. 1954, that substantially all of the capital stock be owned by producers who market products or purchase supplies and equipment through the cooperatives. Respondent's determination to revoke tax-exempt status was predicated upon an 85-percent minimum threshold for the "substantially all" requirement of sec. 521(b)(2),…
1Opinion of the Court
Gerber, Judge:*
In these consolidated cases, respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Docket No. Petitioner Year Deficiency
15643-82 Farmers Cooperative Co. 11977 $2,934.94
1978 891.47
12,638.23 5988-83 Farmers Cooperative Society 2 1979
10,695.18 co co o
The issue for our consideration is whether petitioners are exempt cooperative associations under section 5213 because "substantially all of the capital stock” of each petitioner "is owned by producers who market their products or purchase their supplies and equipment through” the respective petitioners as…
2Cases cited14 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. CorrellSupreme Court of the United States · 1967
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Estate of Edward H. Luehrmann, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1961
9 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Farmers Coop. Co. v. CommissionerUnited States Tax Court · 1987
- Farmers Cooperative Company (Successor-In-Name to Farmers Co-Op Oil Company) v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1987
- Farmers Coop. Co. v. CommissionerUnited States Tax Court · 1987
- Farmers Cooperative Co. v. CommissionerUnited States Tax Court · 1985