Cummins Diesel Sales of Oregon, Inc. v. United States of America, Robert H. Wills and Lillian Wills v. United States

BROWNING, Circuit Judge.

The District Court correctly stated and applied the pertinent legal principles in deciding these tax refund suits adversely to appellant taxpayers (207 F.Supp. 746 (D.Or.1962)). Indeed, appellants do not contend to the contrary.

However, appellants contend that the District Court erred in finding as matters of fact: (1) that earnings and profits of the corporate appellant were permitted to accumulate beyond the reasonable needs of its business in 1955 and 1956, and the corporate appellant was availed of for the purpose of avoiding the income tax with respect to its…