Old Virginia Brick Company, Incorporated v. Commissioner of Internal Revenue

SOBELOFF, Circuit Judge:

In this petition to review a decision of the Tax Court, the taxpayer, Old Virginia Brick Company, seeks to establish the validity of its 1959 election to be taxed as a “small business corporation” under §§ 1371-1377 of subchapter S of the Internal Revenue Code. Under this provision, added to the Code by the Technical Amendments Act of 1958, a qualifying corporation may elect to have its income taxed directly to the individual shareholders, thereby obviating the initial tax at the corporate level. The law requires that all shareholders must consent to the election, but…