Technalysis Corp. v. Commissioner
United States Tax Court
R determined that P, a publicly held corporation, unreasonably accumulated its earnings and profits and, therefore, was subject to the accumulated earnings tax. P argued that the accumulated earnings tax does not apply to publicly held corporations which do not have a shareholder, or a small group of shareholders, who control more than 50 percent of the stock.
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R determined that P, a publicly held corporation, unreasonably accumulated its earnings and profits and, therefore, was subject to the accumulated earnings tax. P argued that the accumulated earnings tax does not apply to publicly held corporations which do not have a shareholder, or a small group of shareholders, who control more than 50 percent of the stock. P further argued that, if the tax can apply, its accumulation was not unreasonable and it lacked the proscribed purpose. Held, the accumulated earnings tax can apply to a publicly held corporation regardless of the concentration of…
1Opinion of the Court
Gerber, Judge:
Respondent, by means of a statutory notice of deficiency, determined Federal income tax deficiencies for petitioner’s 1986, 1987, and 1988 taxable years in the amounts of $272,691.92, $367,756.68, and $449,840, respectively. Respondent, however, conceded that the maximum deficiencies for 1987 and 1988 are not in excess of $361,417.05 and $335,156.36, respectively. The deficiencies are attributable to respondent’s determination that petitioner is subject to the accumulated earnings tax imposed by section 531.1
The issues for consideration are: (1) Whether the accumulated earnings…
2Cases cited16 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- United States v. Donruss Co.Supreme Court of the United States · 1969
- Dixie, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Faber Cement Block Co. v. CommissionerUnited States Tax Court · 1968
- Ivan Allen Co. v. United StatesSupreme Court of the United States · 1975
11 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Gustafson's Dairy v. CommissionerUnited States Tax Court · 1995
- Arnes v. CommissionerUnited States Tax Court · 1994
- Arnes v. CommissionerUnited States Tax Court · 1994
- Gustafson's Dairy v. CommissionerUnited States Tax Court · 1997
- Technalysis Corp. v. CommissionerUnited States Tax Court · 1993
2 more not listed; retrieve them via the Exa API.