City Line Candy & Tobacco Corp. v. Commissioner
United States Tax Court
P, a corporation, is a reseller and licensed wholesale dealer of cigarettes in New York. New York law provides that all cigarettes possessed for sale must bear a stamp issued by the New York tax commissioner. N.Y.
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P, a corporation, is a reseller and licensed wholesale dealer of cigarettes in New York. New York law provides that all cigarettes possessed for sale must bear a stamp issued by the New York tax commissioner. N.Y. Tax Law sec. 471(1) (McKinney 2006 & Supp. 2013). Pursuant to this law, P, a licensed cigarette stamping agent for New York, purchases cigarette packs for sale, purchases and affixes cigarette tax stamps to those cigarette packs, and sells the stamped cigarette packs to subjobbers and retailers in New York City and throughout New York State. Under New York law, P is required to…
1Opinion of the Court
Marvel, Judge:
In a notice of deficiency respondent determined deficiencies in petitioner’s Federal income tax of $96,908 and $9,901 for the taxable years ending (TYE) October 31, 2004 and 2006, respectively. After concessions, 2 the issues for decision are: (1) whether petitioner qualifies for the small reseller exception to the uniform capitalization (UNICAP) rules of section 263A; 3 if not, (2) whether the New York cigarette stamp tax petitioner incurred is an indirect cost that it must capitalize under the UNICAP rules; and, if so, (3) whether respondent properly allocated a portion of…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Indopco, Inc. v. CommissionerSupreme Court of the United States · 1992
- Blair v. Oesterlein MacHine Co.Supreme Court of the United States · 1927
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Gobins v. Comm'rUnited States Tax Court · 1952
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3Cited by1 opinion
- City Line Candy & Tobacco Corp. v. CommissionerUnited States Tax Court · 2013