Diefenthal v. United States

JACK M. GORDON, District Judge:

In this tax case the Commissioner of Internal Revenue utilized section 482 of the Internal Revenue Code of 1954, 26 U.S.C. § 482 (1970), to allocate net income of $161,753.53 for the tax year 1966 from a foreign corporation, which is exempt from United States income tax, to a domestic corporation, Southern Scrap Material Co., Ltd. (hereinafter referred to as Scrapco), which is subject to tax. In addition, the Commissioner found that the foreign corporation’s sole shareholder, Stanley M. Diefenthal (hereinafter referred to as Stanley), who is also a shareholder…