Legal Opinion
O.S.C. & Associates, Inc., D.B.A. Olympic Screen Crafts v. Commissioner of Internal Revenue
Court of Appeals for the Ninth Circuit
Decided August 16, 1999No. 97-71199PublishedCited by 7 opinions
1Opinion of the Court
SILVERMAN, Circuit Judge:
A corporation’s payment of compensation to employees is tax deductible by the corporation; its payment of dividends to shareholders is not. In this ease, we once again examine the circumstances under which deductions for payments to shareholder-employees of a closely-held corporation, ostensibly as compensation for services, will be disallowed as disguised dividends. In Elliotts, Inc. v. Commissioner, 716 F.2d 1241 (9th Cir.1983), we applied a two-part test to deter*1118mine the deductibility of such payments: reasonableness of amount and compensatory intent. We said, “In…
2Cases cited5 opinions
- William R. And Lorna E. Hall v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- August C. Wolf Muriel M. Wolf v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1993
- 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
- Robert W. Delk Dorothy A. Delk Michael W. Delk Mary M. Delk v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1997
3Cited by7 opinions
- David E. Watson, Pc v. United StatesCourt of Appeals for the Eighth Circuit · 2012
- Labelgraphics, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2000
- Stahl v. United StatesDistrict Court, E.D. Washington · 2012
- City of Columbus v. New Plan Realty TrustOhio Supreme Court · 2002
- Columbus Div. of Income Tax v. New Plan Realty TrustOhio Supreme Court · 2002
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