Merchants Club v. United States

JONES, Judge.

The single issue in this case is whether the plaintiff is a social, athletic, or sporting club- or organization within the meaning of Section 1710 of the Internal Revenue Code, and as such subject to the tax therein provided.

Section 1710 of the Internal Revenue Code, 53 Stat. 192, as amended by Sec. 543 (a) of the Revenue Act of 1941, 55 Stat. 687, 711, 26 U.S.C.A. Int.Rev.Code, § 1710, contains the following provision:

“(a) Rate. There shall be levied, assessed, collected, and paid—

“(1) Dues or membership fees. A tax equivalent to 11 per centum of any amount paid as dues or…