S & B Restaurant, Inc. v. Commissioner
United States Tax Court
Petitioner, which was discharging sewage waste from its premises into an underground waterway, entered into an agreement with the Commonwealth of Pennsylvania, under its Clean Streams Law, to make monthly payments to the Clean Water Fund until a central municipal sewer system became available and to connect to, and discharge its waste into, that system. The State would have sought to prevent petitioner from constructing its own treatment facility.
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Petitioner, which was discharging sewage waste from its premises into an underground waterway, entered into an agreement with the Commonwealth of Pennsylvania, under its Clean Streams Law, to make monthly payments to the Clean Water Fund until a central municipal sewer system became available and to connect to, and discharge its waste into, that system. The State would have sought to prevent petitioner from constructing its own treatment facility. Held, the monthly payments were not a "fine or similar penalty" within the meaning of sec. 162(f) and were deductible under sec. 162(a), I.R.C.…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in petitioner’s income tax as follows:
FYE June SO— Deficiency
1974. $7,464
1975. 2,019
All other adjustments having been conceded by petitioner, the sole issue for decision is whether petitioner is entitled to deduct certain payments made to the Clean Water Fund of the State of Pennsylvania.
FINDINGS OF FACT
Petitioner had its principal place of business in Wilkes-Barre, Pa., at the time it filed its petition herein. It filed its Federal income tax returns for the taxable years in question on the accrual basis with the Internal Revenue Service…
2Cases cited10 opinions
- Commissioner v. TellierSupreme Court of the United States · 1966
- Commissioner v. Lincoln Savings & Loan Ass'nSupreme Court of the United States · 1971
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Tucker v. CommissionerUnited States Tax Court · 1978
- United Draperies, Inc. v. CommissionerUnited States Tax Court · 1964
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3Cited by16 opinions
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- Jon T. Stephens and Susanne Stephens v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1990
- Waldman v. CommissionerUnited States Tax Court · 1987
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