State Farm Mutual Automobile Insurance Company, an Illinois Corporation v. United States

SCHNACKENBERG, Circuit Judge.

United States of America, defendant, herein referred to as the Government, has appealed from a judgment against it in the amount (adjusted by stipulation and court order) of $272,499.67, with interest, in favor of State Farm Mutual Automobile Insurance Company, an Illinois Corporation, a mutual casualty insurance company, plaintiff, which is herein referred to as taxpayer. D.C., 200 F.Supp. 324.

The question for decision is whether membership fees collected by it in 1955 and 1956 constitute gross premiums within the meaning of § 823(1) of the 1954 Internal Revenue…