Babst Services, Inc. v. Commissioner
United States Tax Court
Held: Eligibility requirements of taxpayer corporation's profit-sharing plan operated so as to discriminate in favor of officers, shareholders, and highly compensated employees within the meaning of sec. 401(a)(3)(B). Accordingly, the Commissioner's disallowance of a deduction for the corporation's contributions to the plan's trust is sustained.
1Opinion of the Court
Babst Services, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Babst Services, Inc. v. Commissioner
Docket No. 842-75
United States Tax Court
67 T.C. 131; 1976 U.S. Tax Ct. LEXIS 32;
November 4, 1976, Filed
Decision will be entered for the respondent.
Held: Eligibility requirements of taxpayer corporation's profit-sharing plan operated so as to discriminate in favor of officers, shareholders, and highly compensated employees within the meaning of sec. 401(a)(3)(B). Accordingly, the Commissioner's disallowance of a deduction for the corporation's contributions to the plan's trust is…
Also in this document: Dissent.
2Cases cited18 opinions
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Cook v. TaitSupreme Court of the United States · 1924
- Grenada Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1953
- Commissioner of Internal Revenue v. Pepsi-Cola Niagara Bottling CorporationCourt of Appeals for the Second Circuit · 1968
- Ed & Jim Fleitz, Inc. v. CommissionerUnited States Tax Court · 1968
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