Gordy Tire Company v. United States

WHITAKER, Judge.

The question presented in this case is, whether or not the Commissioner of Internal Revenue was justified in disallowing as a deduction the salaries paid plaintiff’s president and secretary-treasurer, and deducted by plaintiff in computing its Federal income taxes for the years 1954 and 1955, and allowing, instead, a salary for plaintiff’s president of considerably less than one-half of the salary paid, and a lesser amount than that paid for plaintiff’s secretary-treasurer.

For five of the last six years plaintiff had paid its president a salary of $18,000 per year, and, at the…