Graybar Electric Company, Inc. v. Commissioner of Internal Revenue

The taxpayer, Graybar Electric Company, Inc., petitions for review of a decision of the Tax Court which found deficiencies for four taxable years, 1947 through 1950, in amounts totalling $214,-593.24, of which $138,115.19 is still in controversy. The deficiencies arose from payments made to the estates or surviving relatives of deceased stockholders, taxpayer claiming that they were special *404death benefit payments which were reasonable compensation for services rendered by the deceased stockholders, all of whom had been its officers or employees, and thus deductible as ordinary and necessary…