Hicks Nurseries, Inc. v. Commissioner of Internal Revenue

MOORE, Circuit Judge:

This appeal involves tax deficiencies asserted by the Commissioner against the appellee for the taxable years 1964— 67. The total sum involved is $253,-334.29, plus interest. 1 From a decision of the Tax Court (reported at 62 T.C. 138) in favor of the taxpayer, the Commissioner has appealed. We reverse.

I

Hicks Nurseries, Inc. (“Hicks”) is a closely-held corporation organized in 1982 to succeed to the wholesale and retail nursery and landscaping business that the Hicks family had operated for over three-quarters of a century. All stock in the corporation has always been…