Western Transmission Corp. v. Commissioner
United States Tax Court
1. During the taxable years petitioner's income was derived primarily from rentals on its property leased to a partnership composed principally of petitioner's five shareholders. Held, petitioner is a personal holding company as defined in sections 500- 502 of the Internal Revenue Code. 2. Petitioner failed to file personal holding company returns for each of the taxable years relying upon its tax advisers.
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1. During the taxable years petitioner's income was derived primarily from rentals on its property leased to a partnership composed principally of petitioner's five shareholders. Held, petitioner is a personal holding company as defined in sections 500- 502 of the Internal Revenue Code. 2. Petitioner failed to file personal holding company returns for each of the taxable years relying upon its tax advisers. Held, petitioner's failure to file the required returns was due to reasonable cause and was not due to neglect, and petitioner is not subject to a penalty therefor.
1Opinion of the Court
OPINION.
Bice, Judge:
The first issue is whether petitioner is a personal holding company within the meaning of the applicable provisions of the Internal Kevenue Code. Section 501 defines a personal holding company, and section 502 sets forth the items of gross income which constitute personal holding company income. In the instant case, we are primarily concerned with whether petitioner meets the gross income requirement contained in section 501 (a).1
We are also concerned with whether petitioner meets the stock ownership requirement of such section, but our findings show that petitioner’s…
2Cases cited14 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Weiss v. WeinerSupreme Court of the United States · 1929
- Commissioner of Internal Revenue v. WhitneyCourt of Appeals for the Second Circuit · 1948
- Randolph Products Co. v. ManningCourt of Appeals for the Third Circuit · 1949
- Jennings v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1940
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3Cited by17 opinions
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- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1985
- Busche v. CommissionerUnited States Tax Court · 1955
- Amo Realty Co. v. CommissionerUnited States Tax Court · 1955
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