Hughes Int'l Sales Corp. v. Commissioner
United States Tax Court
R determined that P did not qualify as a DISC and was required to pay income tax on its commission income. R contends that P failed to meet the 95-percent gross receipts requirement of sec. 992(a)(1)(A), I.R.C., because sec. 1.993-6(e)(1), Income Tax Regs., required P to use its related supplier's method of accounting. P contends that the regulation is invalid.
Read the full summary
R determined that P did not qualify as a DISC and was required to pay income tax on its commission income. R contends that P failed to meet the 95-percent gross receipts requirement of sec. 992(a)(1)(A), I.R.C., because sec. 1.993-6(e)(1), Income Tax Regs., required P to use its related supplier's method of accounting. P contends that the regulation is invalid. Held: Sec. 1.993-6(e)(1), Income Tax Regs., to the extent that it requires a DISC to use its related supplier's method of accounting in computing qualified export receipts and gross receipts, is invalid.
1Opinion of the Court
Gerber, Judge:
Respondent determined Federal income tax deficiencies in petitioner’s taxable income of $4,904,470 and $14,143,945 for the taxable years ending March 31, 1982, and March 31, 1983, respectively. The deficiencies are solely attributable to respondent’s determination that petitioner did not qualify as a domestic international sales corporation (disc).
The major issue for consideration is the validity of certain aspects of section 1.993-6(e)(l), Income Tax Regs. Two preliminary issues also for consideration are (1) whether domestic sales, erroneously included as qualified export…
2Cases cited14 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
- Rowan Cos. v. United StatesSupreme Court of the United States · 1981
9 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Robinson v. Comm'rUnited States Tax Court · 2002
- Hachette USA v. CommissionerUnited States Tax Court · 1995
- FMC Corp. v. CommissionerUnited States Tax Court · 1993
- Edward A. Robinson III and Diana R. Robinson v. CommissionerUnited States Tax Court · 2002
- Hachette USA v. CommissionerUnited States Tax Court · 1995
3 more not listed; retrieve them via the Exa API.