RAS of Sand River, Inc. v. Commissioner
United States Tax Court
Held: Petitioner was a personal holding company within the meaning of section 542(a) during the taxable year in issue and is, therefore, subject to the personal holding company tax imposed under section 541. Held further: No deduction is allowed with respect to payments made to one of petitioner's employees who, in addition, was also a shareholder, because petitioner failed to prove that the payments, which were designated as "per diem," constituted an ordinary and necessary…
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Held: Petitioner was a personal holding company within the meaning of section 542(a) during the taxable year in issue and is, therefore, subject to the personal holding company tax imposed under section 541. Held further: No deduction is allowed with respect to payments made to one of petitioner's employees who, in addition, was also a shareholder, because petitioner failed to prove that the payments, which were designated as "per diem," constituted an ordinary and necessary business expense. Held further: Petitioner is liable for additions to tax under sections 6653(a)(1) and 6653(a)(2).…
1Opinion of the Court
RAS OF SAND RIVER, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
RAS of Sand River, Inc. v. Commissioner
Docket No. 5877-88
United States Tax Court
T.C. Memo 1990-322; 1990 Tax Ct. Memo LEXIS 345; 59 T.C.M. (CCH) 1010; T.C.M. (RIA) 90322;
June 27, 1990, Filed
Decision will be entered under Rule 155.
Held: Petitioner was a personal holding company within the meaning of section 542(a) during the taxable year in issue and is, therefore, subject to the personal holding company tax imposed under section 541. Held further: No deduction is allowed with respect to payments made to one of…
2Cases cited30 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Neely v. CommissionerUnited States Tax Court · 1985
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Bixby v. CommissionerUnited States Tax Court · 1972
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