Affiliated Foods, Inc., A Corporation v. Commissioner

128 T.C. No. 7

UNITED STATES TAX COURT AFFILIATED FOODS, INC., A CORPORATION, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 12846-04. Filed March 29, 2007. P, a wholesale food purchasing cooperative, holds one or more food shows a year at which member stores and vendors selling to P meet. The vendors offer special show discounts to member stores placing orders with P for the vendors’ products at the food shows. The special discount sometimes takes the form of a cash payment from the vendor to the member store based on the quantity of the vendor’s products ordered.…