GPD, Inc. v. Commissioner
United States Tax Court
Petitioner in 1968 had a decrease in earnings and profits because part of the payments in redemption of shares of its stock held by charities was out of current year's earnings and part out of accumulated earnings and profits.
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Petitioner in 1968 had a decrease in earnings and profits because part of the payments in redemption of shares of its stock held by charities was out of current year's earnings and part out of accumulated earnings and profits. Held, petitioner is not subject to the accumulated-earnings tax imposed by sec. 531, I.R.C. 1954, for the year 1968. Held, further, on the facts petitioner is subject to the accumulated-earnings tax in 1967 on its accumulated taxable income computed under sec. 535, I.R.C. 1954, since no amount of the 1967 income was retained for the reasonable needs of its business.
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes for the years and in the amounts as follows:
Tear '• Amount
1967 _$79, 416. 93
1968 _ 84, 593. 87
The issue for decision is whether for each of the years 1967 and 1968 petitioner is subject to the aceumulated-earnings tax imposed by section 531, I.R.G. 1954,1 because of being availed of for the purpose of avoiding income taxes with respect to its shareholders by permitting earnings and profits to accumulate instead of being divided or distributed.
FINDINGS OF FACT
Some of the facts have been stipulated and are…
2Cases cited14 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- United States v. Donruss Co.Supreme Court of the United States · 1969
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Dixie, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Faber Cement Block Co. v. CommissionerUnited States Tax Court · 1968
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3Cited by13 opinions
- Anderson v. CommissionerUnited States Tax Court · 1976
- Gpd, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1974
- Webb v. CommissionerUnited States Tax Court · 1977
- EMI Corp. v. CommissionerUnited States Tax Court · 1985
- Cadillac Textiles, Inc. v. CommissionerUnited States Tax Court · 1975
8 more not listed; retrieve them via the Exa API.