Thomas E. Basham Co. v. Lucas

DAWS ON, District Judge.

The sole question involved in this ease is whether the plaintiff, a corporation engaged in the advertising agency business, was entitled to be classified as a personal service corporation under the provisions of section 200 of the Revenue Act of 1918 (Comp. St. § 6336%i). The applicable part of that section reads as follows:

“The term ‘personal service corporation’ means a corporation whose income is to be ascribed primarily to the activities of the principal owners or stockholders who are themselves regularly engaged in the active conduct of the affairs of the…