Lansing Broadcasting Company v. Commissioner of Internal Revenue

WEICK, Circuit Judge.

The sole issue in this appeal is whether the taxpayer’s right to be taxed as a “small business corporation” under Sub-chapter S of the Internal Revenue Code of 1954 (26 U.S.C. §§ 1371-1378) was terminated when more than 20% of its gross receipts in 1962 consisted of so-called “personal holding company income” within the meaning of Section 1372(e) (5) of the Code. The Tax Court ruled against the taxpayer. 52 T.C. 299 (1969).

The facts were stipulated and were stated by the Tax Court as follows:

“Petitioner, a corporation organi2;ed under the laws of the State of Michigan,…