Smith v. Commissioner
United States Tax Court
In the State of Mississippi there are laws that make it a criminal offense to sell, keep in possession, give away, or transport intoxicating liquors in the State. There is another law that levies a tax on sales that are prohibited by law, and is customarily administered on sales of intoxicating liquors.
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In the State of Mississippi there are laws that make it a criminal offense to sell, keep in possession, give away, or transport intoxicating liquors in the State. There is another law that levies a tax on sales that are prohibited by law, and is customarily administered on sales of intoxicating liquors. Petitioner, a food broker, entertained persons with whom he was doing business or seeking their business by taking them to lunch or dinner and serving and giving them alcoholic beverages. He claimed deductions in the taxable year 1953 for the cost of intoxicating liquors purchased in…
1Opinion of the Court
OPINION.
Turner, Judge:
The principle that an item of expense is not deductible if allowance thereof would contravene sharply defined State or Federal policy, has been well established. See Hoover Express Co. v. United States, 356 U.S. 38; Tank Truck Rentals v. Commissioner, 356 U.S. 30; Commissioner v. Sullivan, 356 U.S. 27; Lilly v. Commissioner, 343 U.S. 90; Commissioner v. Heininger, 320 U.S. 467; United States v. Winters, 261 F. 2d 675, certiorari denied 359 U.S. 943; Wm. T. Stover Co., 27 T.C. 434; R. E. L. Finley, 27 T.C. 413, affd. 255 F. 2d 128; Boyle, Flagg & Seaman, Inc., 25 T.C. 43;…
2Cases cited16 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- License Tax CasesSupreme Court of the United States · 1867
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Lilly v. CommissionerSupreme Court of the United States · 1952
- Commissioner v. SullivanSupreme Court of the United States · 1958
11 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Carlucci v. CommissionerUnited States Tax Court · 1962
- Allan L. Hanson and Florence S. Hanson v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Teeling v. CommissionerUnited States Tax Court · 1964
- Commissioner of Internal Revenue v. William A. BagleyCourt of Appeals for the First Circuit · 1967
- Hanson v. CommissionerUnited States Tax Court · 1960
16 more not listed; retrieve them via the Exa API.