Mississippi Valley Portland Cement Company v. United States

GOLDBERG, Circuit Judge:

The taxpayer, a nontax-exempt cooperative incorporated in Mississippi, sought to deduct distributions to its shareholders from its corporate income tax as “patronage dividends.” 1 These payments were made from the corporation’s net profits during the tax years in question. The district court, 280 F.Supp. 393, agreeing with the Commissioner, said that notwithstanding the cooperative camouflage, these payments were in reality no more than dividends paid to the corporation’s shareholders, and held that they were not deductible as patronage dividends. 2 We, like the…