Alex Brown, Inc. v. Commissioner
United States Tax Court
In late December 1968, petitioner sold its operating assets. Between that time and the end of its current fiscal year on May 31, 1969, it made no plans for any further business activities. Its assets were invested in cash and marketable securities.
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In late December 1968, petitioner sold its operating assets. Between that time and the end of its current fiscal year on May 31, 1969, it made no plans for any further business activities. Its assets were invested in cash and marketable securities. Held, petitioner became a "mere holding or investment company" (see sec. 533(b), I.R.C. 1954). Further held, petitioner was formed or availed of for the purpose of avoiding income tax with respect to its shareholders and is therefore subject to the accumulated-earnings tax for such fiscal year.
1Opinion of the Court
TaNneNwald, Judge:
Respondent determined a deficiency of $74,552 against petitioner, representing aceumulated-earnings tax for the fiscal year ended May 31, 1969. The sole question before us is whether petitioner was availed of for the purpose of avoiding Federal income taxes with respect to its shareholders within the meaning of sections 531 through 537.1
FINDINGS OF PACT
Some of the facts have been stipulated and are incorporated herein by this reference.
Petitioner’s principal office was in Cleveland, Ohio, at the time it filed its petition herein. It filed its Federal income tax return for…
2Cases cited11 opinions
- United States v. Donruss Co.Supreme Court of the United States · 1969
- Dixie, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Faber Cement Block Co. v. CommissionerUnited States Tax Court · 1968
- Bremerton Sun Publishing Co. v. CommissionerUnited States Tax Court · 1965
- Dixie, Inc. v. CommissionerUnited States Tax Court · 1958
6 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- JJJ Corp. v. United StatesUnited States Court of Claims · 1978
- Alex Brown, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1974
- Wilcox Mfg. Co. v. CommissionerUnited States Tax Court · 1979
- Alex Brown, Inc. v. CommissionerUnited States Tax Court · 1973
- Hamabe Realty Corp. v. CommissionerUnited States Tax Court · 1974
2 more not listed; retrieve them via the Exa API.