Pestcoe v. Commissioner
United States Tax Court
A corporation, in which petitioners were stockholders, resolved on November 14, 1958, to elect to be taxed as a small business corporation under subchapter S of the 1954 Code.
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A corporation, in which petitioners were stockholders, resolved on November 14, 1958, to elect to be taxed as a small business corporation under subchapter S of the 1954 Code. The corporation met all requirements to qualify and the last days for making the election were December 1, 1958, for 1958, and January 31, 1959, for 1959. Under section 1372(c)(1) of the 1954 Code, the Secretary, or his delegate, is specifically authorized to prescribe by regulation the manner of making the election. The regulations adopted and applicable here required the filing of Form 2553 and written consents by…
1Opinion of the Court
Hoyt, Judge:
The respondent determined deficiencies in petitioners’ income taxes for the years 1958 and 1959, as follows:
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Losses of Pestcoe Clothing Co., Inc., for 1958, of which petitioners claimed their proportionate parts, were conceded on brief. It is agreed that Mercer Clothing Manufacturing Co., Inc. (hereafter called Mercer), meets the requirements of a small business corporation under section 1371 of the 1954 Code. The sole issue to be decided is whether a valid election was made by Mercer to be treated as a small business corporation under section 1372 of the Internal…
2Cases cited3 opinions
- J. E. Riley Investment Co. v. CommissionerSupreme Court of the United States · 1940
- Simons v. United StatesDistrict Court, D. Connecticut · 1962
- J. E. Riley Inv. Co. v. CommissionerCourt of Appeals for the Ninth Circuit · 1940
3Cited by45 opinions
- Kean v. CommissionerUnited States Tax Court · 1968
- Frentz v. CommissionerUnited States Tax Court · 1965
- Feldman v. CommissionerUnited States Tax Court · 1966
- Brutsche v. CommissionerUnited States Tax Court · 1976
- Ralph L. Brutsche and Ingrid Brutsche v. Commissioner of Internal Revenue, Ruth L. Farley v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1978
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