Radom & Neidorff, Inc. v. United States

LARAMORE, Judge.

This is an action to recover Federal income taxes and interest allegedly overpaid by plaintiff for the taxable year ended December 31, 1950.

The question presented is whether the deduction of accrued salary expenses oththerwise allowable by section 23(a) (1), Internal Revenue Code of 1939, 26 U.S.C. § 23(a) (1952 Ed.), is barred by section 24(c) of the Internal Revenue Code of 1939, 26 U.S.C. § 24(c).

Plaintiff, a taxpayer, is a New York corporation organized in 1916. Its capital stock issued and outstanding was owned in equal shares by David Radom and Henry Neidorff, the…