Rocky Mountain Associates International, Inc. v. Commissioner
United States Tax Court
E Corp. was the wholly owned subsidiary of R Corp. and had duly elected to be treated as a DISC under sec. 991, I.R.C. 1954. During the year in issue, E's only income was attributable to commissions R had agreed to pay to E. R "paid" E with a promissory note. The note was designated a "producer's loan," and not as representing a commission. The note was delivered later than 60 days after the close of E's taxable year.
Read the full summary
E Corp. was the wholly owned subsidiary of R Corp. and had duly elected to be treated as a DISC under sec. 991, I.R.C. 1954. During the year in issue, E's only income was attributable to commissions R had agreed to pay to E. R "paid" E with a promissory note. The note was designated a "producer's loan," and not as representing a commission. The note was delivered later than 60 days after the close of E's taxable year. It was backdated to a date that fell within 60 days after the close of E's taxable year. Held, the backdated promissory note does not constitute payment within 60 days after the…
1Opinion of the Court
NIMS, Chief Judge:
Respondent determined a deficiency in Federal corporate income tax of petitioner Rocky Mountain Associates International, Inc., for the taxable year ended December 31, 1980, in the amount of $82,980, and a deficiency in Federal corporate income tax of petitioner Rocky Mountain Associates Export, Inc., for the taxable year ended October 31, 1980, in the amount of $166,059. The issues for determination in this case are: (1) Whether Rocky Mountain Associates Export, Inc. (Export), qualified as a domestic international sales corporation (DISC) for the taxable year ended October…
2Cases cited10 opinions
- Westinghouse Electric Corp. v. TullySupreme Court of the United States · 1984
- Cwt Farms, Inc. And Cwt International, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1985
- CWT Farms, Inc. v. CommissionerUnited States Tax Court · 1982
- Lecroy Research Systems Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1984
- Gehl Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1986
5 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Dixson Int'l Service Corp. v. CommissionerUnited States Tax Court · 1990
- Computervision Corp. v. CommissionerUnited States Tax Court · 1991
- Computervision Corp. v. CommissionerUnited States Tax Court · 1991
- Dixson Int'l Service Corp. v. CommissionerUnited States Tax Court · 1990
- Hughes Int'l Sales Corp. v. CommissionerUnited States Tax Court · 1993
2 more not listed; retrieve them via the Exa API.