Legal Opinion

Independent Cooperative Milk Producers Asso. v. Commissioner

United States Tax Court

Decided June 15, 1981No. Docket No. 10791-78PublishedCited by 9 opinions

Petitioner, a farmers' cooperative, amended its bylaws in 1967 so as to comply with sec. 1388(c)(2)(B)(i), I.R.C. 1954. Petitioner's membership was notified of this change in 1967. The membership agreement signed by petitioner's post-1967 members provides that each member agrees "to abide by all rules and regulations." Petitioner did not distribute copies of its bylaws as amended to its post-1967 members.

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Petitioner, a farmers' cooperative, amended its bylaws in 1967 so as to comply with sec. 1388(c)(2)(B)(i), I.R.C. 1954. Petitioner's membership was notified of this change in 1967. The membership agreement signed by petitioner's post-1967 members provides that each member agrees "to abide by all rules and regulations." Petitioner did not distribute copies of its bylaws as amended to its post-1967 members. In accordance with its bylaws, petitioner allocates its net annual earnings to its members by means of patronage dividends. During the years in issue, petitioner paid 20 percent of its…

1Opinion of the Court

Hall, Judge:

Respondent determined deficiencies in petitioner’s income tax of $10,622.26 for 1973 and $19,895.35 for 1974. The issue for decision is whether allocations of patronage dividends to certain of petitioner’s members constituted “qualified written notices of allocation” as defined by section 1388(c).1

FINDINGS OF FACT

Some of the facts have been stipulated and are found accordingly.

At the time it filed its petition, petitioner had its principal place of business in Grand Rapids, Mich. Petitioner filed its tax returns on the calendar year basis.

Petitioner is a farmers’ cooperative,…

2Cases cited7 opinions

  1. Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
  2. Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
  3. Long Poultry Farms, Incorporated v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1957
  4. Commissioner of Internal Revenue v. B. A. CarpenterCourt of Appeals for the Fifth Circuit · 1955
  5. McCamant v. CommissionerUnited States Tax Court · 1959

2 more not listed; retrieve them via the Exa API.

3Cited by9 opinions

  1. Estate of Bowers v. CommissionerUnited States Tax Court · 1990
  2. Buckeye Countrymark v. CommissionerUnited States Tax Court · 1994
  3. Alice Perkins & Fredrick Perkins v. CommissionerUnited States Tax Court · 2018
  4. Buckeye Countrymark v. CommissionerUnited States Tax Court · 1994
  5. Estate of Bowers v. CommissionerUnited States Tax Court · 1990

4 more not listed; retrieve them via the Exa API.

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