Doug-Long, Inc. v. Commissioner
United States Tax Court
Petitioner owned and operated a truck stop. During the years in issue, petitioner permitted its earnings and profits to accumulate. Held, in applying the Bardahl formula to determine petitioner's working capital needs, petitioner's estimated tax payments are an operating expense. Held, further, petitioner's cash sales, as well as its credit sales, are included in the determination of the duration of petitioner's accounts receivable cycle under the formula.
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Petitioner owned and operated a truck stop. During the years in issue, petitioner permitted its earnings and profits to accumulate. Held, in applying the Bardahl formula to determine petitioner's working capital needs, petitioner's estimated tax payments are an operating expense. Held, further, petitioner's cash sales, as well as its credit sales, are included in the determination of the duration of petitioner's accounts receivable cycle under the formula. Held, further: The amount of accumulations expected or required under the "dividend guidelines" imposed by the Economic Stabilization Act…
1Opinion of the Court
Hall, Judge:
Respondent determined the following deficiencies and additions for accumulated earnings taxes for petitioner:
Accumulated Year Deficiency earnings tax
1972 . $209.84 $12,020.25
1973 . 0 10,168.85
1974 . 8,387.70 29,869.56
Due to concessions, the issues for decision are whether petitioner, who owned and operated a “truck stop,” is liable for the accumulated earnings tax imposed by section 5311 for 1972,1973, and 1974, and if so, the extent of such liability. In order to resolve these issues, we must consider the following subsidiary questions:
A. Whether petitioner permitted its earnings…
2Cases cited24 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- United States v. Donruss Co.Supreme Court of the United States · 1969
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Dixie, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
19 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- J.H. Rutter Rex Mfg. Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1988
- Doug-Long, Inc. v. CommissionerUnited States Tax Court · 1979
- Snow Mfg. Co. v. CommissionerUnited States Tax Court · 1986
- Proctor v. CommissionerUnited States Tax Court · 1981
- EMI Corp. v. CommissionerUnited States Tax Court · 1985
13 more not listed; retrieve them via the Exa API.