Addison International, Inc. v. Commissioner
United States Tax Court
P, a DISC, was organized and operated in reliance upon the handbook, a guidebook for DISC's issued by the Department of the Treasury. P held no property, had neither employees nor place of business, and conducted no activity beyond those steps necessary to ensure qualification as a DISC.
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P, a DISC, was organized and operated in reliance upon the handbook, a guidebook for DISC's issued by the Department of the Treasury. P held no property, had neither employees nor place of business, and conducted no activity beyond those steps necessary to ensure qualification as a DISC. R sent a statutory notice of deficiency to P in which R determined that P failed to qualify as a DISC for taxable years 1976 and 1977 on the ground that a commission payment was not made within the 60-day period allowed by regulation. Held: Because P was entitled to rely on the handbook, the regulation cannot…
1Opinion of the Court
WRIGHT, Judge:
By notice of deficiency dated December 15, 1981, respondent determined deficiencies in petitioner’s Federal income taxes for the taxable years 1976 and 1977 in the amounts of $1,100,583 and $1,170,603, respectively.
After concessions by the parties, the issues for our decision are (1) whether petitioner Addison International, Inc., failed to qualify as a Domestic International Sales Corporation (DISC) under sections 991 through 997 during its taxable years 1976 and 1977 and, if so, (2) whether petitioner Addison International, Inc., is properly taxable under section 11 on its…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Lucas v. EarlSupreme Court of the United States · 1930
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Westinghouse Electric Corp. v. TullySupreme Court of the United States · 1984
- Cwt Farms, Inc. And Cwt International, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1985
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3Cited by23 opinions
- Dixson Int'l Service Corp. v. CommissionerUnited States Tax Court · 1990
- Addison International, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1989
- Sim-Air, USA, Ltd. v. CommissionerUnited States Tax Court · 1992
- Butka v. CommissionerUnited States Tax Court · 1988
- Hellweg v. Comm'rUnited States Tax Court · 2011
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