Farmers Union Cooperative Co. v. Commissioner
United States Board of Tax Appeals
Where a cooperative company under the laws of Nebraska has extensive dealings with nonstockholders and provides in its bylaws that patronage dividends shall be paid only to stockholders and to them "in proportion to the amount of business they have done with corporation during business year", the company is not exempt from income tax.
1Opinion of the Court
OPINION.
Smith:
This case involves a deficiency in income tax of $1,065.93 for the calendar year 1928 and a penalty of $266.48 for failure to file a return, making a total of $1,332.41 in controversy.
The petitioner claims exemption from income tax on the ground that it is a corporation or association organized and operated on a cooperative basis for the purpose of marketing products of members and producers and purchasing supplies and equipment and turning back the profits or savings to the producers and purchasers after the payment of necessary expenses. The respondent has denied the claim of…
2Cases cited2 opinions
- Bank of Commerce v. Tennessee Ex Rel. MemphisSupreme Court of the United States · 1896
- Heiner v. Colonial Trust Co.Supreme Court of the United States · 1927
3Cited by10 opinions
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Lamesa Cooperative Gin v. CommissionerUnited States Tax Court · 1982
- Kingfisher Cooperative Elevator Asso. v. CommissionerUnited States Tax Court · 1985
- Eugene Fruit Growers Asso. v. CommissionerUnited States Board of Tax Appeals · 1938
- Farmers Union Cooperative Co. v. CommissionerUnited States Board of Tax Appeals · 1935
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