Durbin Paper Stock Co. v. Commissioner
United States Tax Court
Respondent determined that petitioner's subsidiary, Durbin International, Inc., failed to qualify as a Domestic International Sales Corporation (DISC) for the taxable years here in issue.
Read the full summary
Respondent determined that petitioner's subsidiary, Durbin International, Inc., failed to qualify as a Domestic International Sales Corporation (DISC) for the taxable years here in issue. This determination was based on Durbin International's failure to satisfy the "paid-in" capital requirement of sec. 1.992-1(d)(1), Income Tax Regs., and the separate bank account requirement of sec. 1.992-1(a)(6), Income Tax Regs.Held: Sec. 1.992-1(d)(1), Income Tax Regs., and sec. 1.992-1(a)(6), Income Tax Regs., are both invalid. Durbin International qualified as a DISC for the taxable years here in issue.
1Opinion of the Court
OPINION
Sterrett, Judge:
By notice of deficiency dated May 26,1977, respondent determined deficiencies in petitioner’s Federal income taxes as follows:
TYE July 31— Deficiency
1973 .$19,010.32
1974 . 29,941.97
1975 . 235,130.00
After concessions, the sole issue remaining for our decision is whether Durbin International, Inc., a wholly owned subsidiary of petitioner, was a Domestic International Sales Corp. (DISC) as defined in section 992(a), I.R.C. 1954, during the fiscal years ended July 31,1974, and July 31,1975.
The facts in this case have been fully stipulated pursuant to Rule 122, Tax Court…
2Cases cited18 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
13 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Minahan v. CommissionerUnited States Tax Court · 1987
- Miller v. CommissionerUnited States Tax Court · 1985
- Truck & Equipment Corp. v. CommissionerUnited States Tax Court · 1992
- Stephenson Trust v. CommissionerUnited States Tax Court · 1983
- Grant v. CommissionerUnited States Tax Court · 1985
35 more not listed; retrieve them via the Exa API.