Thompson & Green Machinery Co. v. United States

MEMORANDUM

MORTON, District Judge.

This is an action to recover income tax paid for the year 1966 after assessment by the Internal Revenue Service. Proper claims for refund were filed, denied, and this suit was timely commenced.

Two questions are involved, i. e.:(1) Whether legal and accounting fees incident to certain corporate mergers *1129and purchase of minority stockholders are deductible as ordinary and necessary business' expenses.(2) Whether certain sums paid to plaintiff by county governments were tax-exempt interest.

QUESTION 1

Prior to the taxable year 1966, Thompson & Green Enterprises,…