Shelby U.S. Distributors, Inc. v. Commissioner
United States Tax Court
1. P and S, a subsidiary of P, maintained a profit-sharing plan for their employees under which T was the trustee. The Commissioner had determined that such plan was qualified and that T was exempt from taxation, but in 1971, he revoked such exemption on the ground that T was no longer operated for the exclusive benefit of the employees under sec. 401(a), I.R.C. 1954, because 96 percent of its assets were invested in notes and preferred stock of P and S. Held, under the…
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1. P and S, a subsidiary of P, maintained a profit-sharing plan for their employees under which T was the trustee. The Commissioner had determined that such plan was qualified and that T was exempt from taxation, but in 1971, he revoked such exemption on the ground that T was no longer operated for the exclusive benefit of the employees under sec. 401(a), I.R.C. 1954, because 96 percent of its assets were invested in notes and preferred stock of P and S. Held, under the facts of this case, the investment of 96 percent of the assets of T in securities of P and S does not justify the conclusion…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal income taxes: .
Taxable year Petitioner ending Deficiency
Shelby U.S. Distributors, Inc. 12/31/71 $31,908.28
12/31/72 43,626.74
Shelby Supply Co., Profit-Sharing Trust and/or U.S. Distributors Co. Div. Profit-Sharing Trust (Division of Stratford Retreat House) . 3/31/71 14,838.35
3/31/72 12,858.53
3/31/73 13,331.19
The petitioners have conceded that certain determinations of the Commissioner are correct, and the issues remaining for decision are: (1) Whether the trust under an employees profit-sharing…
2Cases cited15 opinions
- United States v. CorrellSupreme Court of the United States · 1967
- Estate of Horvath v. CommissionerUnited States Tax Court · 1973
- Riss v. CommissionerUnited States Tax Court · 1971
- Richard R. Riss, Sr. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1973
- Riss v. CommissionerUnited States Tax Court · 1971
10 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- In Re Edith Bloom, M.D., Debtor. Edith Bloom, M.D. v. Gilbert Robinson, Chapter 7 TrusteeCourt of Appeals for the Ninth Circuit · 1988
- S & B Restaurant, Inc. v. CommissionerUnited States Tax Court · 1980
- Winger's Dep't Store, Inc. v. CommissionerUnited States Tax Court · 1984
- DiLeo v. CommissionerUnited States Tax Court · 1991
- Dileo v. Comm'rUnited States Tax Court · 1991
12 more not listed; retrieve them via the Exa API.