Legal Opinion
Labelgraphics, Inc. v. Commissioner of Internal Revenue
Court of Appeals for the Ninth Circuit
Decided August 8, 2000No. 99-70164PublishedCited by 16 opinions
1Opinion of the Court
OPINION
McKEOWN, Circuit Judge:
This case stems from a bonus-characterized by the taxpayer itself as “unusually high”-paid to the president of a closely held, single-shareholder corporation. The taxpayer, LabelGraphics, Inc., (“Label-Graphics”) appeals the Tax Court’s decision that only $406,000 of the $878,913 paid to its president, Lon D. Martin (“Martin”), in fiscal year 1990, was reasonable compensation and therefore deductible as an ordinary and necessary business expense. We must determine whether the Tax Court appropriately applied the five-factor test established in Elliotts, Inc. v.…
2Cases cited14 opinions
- United States v. United States Gypsum Co.Supreme Court of the United States · 1948
- Nor-Cal Adjusters, AKA Nor-Cal Insurance Adjusters, Formerly Hobson Adjusters, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
- Elliotts, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Levenson & Klein, Inc. v. CommissionerUnited States Tax Court · 1977
- Owensby & Kritikos, Inc. v. CommissionerCourt of Appeals for the Fifth Circuit · 1987
9 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Menard, Inc. v. CommissionerCourt of Appeals for the Seventh Circuit · 2009
- Metro Leasing and Development Corporation East Bay Chevrolet Company, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2004
- In Re Dow Corning Corp.United States Bankruptcy Court, E.D. Michigan · 2001
- Securities and Exchange Commission, Henry C. Yuen Elsie M. Leung, Intervenors-Appellants v. Gemstar-Tv Guide International, Inc.Court of Appeals for the Ninth Circuit · 2004
- Mulcahy, Pauritsch, Salvador & Co. v. CommissionerCourt of Appeals for the Seventh Circuit · 2012
11 more not listed; retrieve them via the Exa API.