Herold Fund, Inc. v. Commissioner of Revenue Services

This appeal1 arises from a disagreement between the plaintiff, The Herold Fund, Inc., and the defendant, the commissioner of revenue services, concerning the proper method of taxation applicable to the plaintiff for the tax years ending June 30,1975, and June 30,1976. The parties to this action stipulated that The Herold Fund, Inc., is a regulated investment company as that term is defined in § 851 of the Internal Revenue Code. The principal issue on appeal is whether a corporation which satisfies the criteria to be classified as a regulated investment company may, nevertheless, be treated…