Loewy Drug Co. of Baltimore City v. United States

THOMSEN, Chief Judge.

This is an action to recover income taxes alleged to have been erroneously and illegally collected from plaintiff, Loewy Drug Company of Baltimore City (Loewy Drug). The specific issue is whether certain payments which Loewy Drug made in 1956 and 1957 to Lallah R. Pierpont, widow of its president and majority stockholder, Mervin G. Pierpont, were deductible by it under sec. 404(a), I.R.C.1954, 26 U.S.C.A. § 404 (a).1 The taxability to the widow of those payments was considered in Poyner v. C. I. R., 4 Cir., 301 F.2d 287 (1962), *144but different statutes and tests are…