Ideal Basic Industries, Inc. v. Commissioner
United States Tax Court
Potash Corp. of America (PCA), a division of petitioner, mines and concentrates sylvinite ore, producing five grades of potassium chloride, or muriate of potash, which it sells primarily for use as an agricultural fertilizer.
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Potash Corp. of America (PCA), a division of petitioner, mines and concentrates sylvinite ore, producing five grades of potassium chloride, or muriate of potash, which it sells primarily for use as an agricultural fertilizer. The Commissioner agrees that the muriate produced by flotation constitutes mining for the purpose of computing petitioner's allowance for percentage depletion but determined that PCA's treatment processes, involving the leaching and crystallization of muriate "fines" and dust in order to produce its soluble and chemical grade muriate, are refining or manufacturing…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in and additions to petitioner’s Federal income tax as follows:
Additions to tax Calendar year Deficiency under sec. 6653(a)1
1971. $414,016 0
1972 . 275,335 0
1973 . 867,424 $43,371
1974 . 579,348 28,967
2,136,123 72,338
The deficiencies result primarily from adjustments to petitioner’s deductions for percentage depletion with respect to its potash mining operations, with the exception of Issue 7 which relates to petitioner’s cement operations.
The issues remaining for decision are as follows: (1) Whether the leaching and crystallization…
2Cases cited24 opinions
- United States v. Cannelton Sewer Pipe Co.Supreme Court of the United States · 1960
- Alabama By-Products Corporation v. George D. Patterson, District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- Peter Stemkowski v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1982
- Stemkowski v. CommissionerUnited States Tax Court · 1981
- North Carolina Granite Corp. v. CommissionerUnited States Tax Court · 1964
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3Cited by18 opinions
- Dresser Industries, Inc. And Consolidated Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1990
- Dresser Industries, Inc. v. CommissionerUnited States Tax Court · 1989
- Dresser Industries, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 2001
- Bowater, Inc. v. CommissionerUnited States Tax Court · 1993
- Shell Oil Co. v. CommissionerUnited States Tax Court · 1987
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