Legal Opinion

Dr. Pepper Bottling Co. v. Commissioner

United States Tax Court

Decided January 22, 1968No. Docket No. 4453-65Unpublished

Respondent disallowed a large portion of the salary paid by petitioner to its president and deducted in its return for the fiscal year ended February 29, 1964. The president had not received any salary for many years because of petitioner's financial situation but performed valuable executive services for petitioner throughout the years and in the year at issue in particular.

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Respondent disallowed a large portion of the salary paid by petitioner to its president and deducted in its return for the fiscal year ended February 29, 1964. The president had not received any salary for many years because of petitioner's financial situation but performed valuable executive services for petitioner throughout the years and in the year at issue in particular. Held: The services rendered petitioner by its president were unique, vital to petitioner's financial success and valuable. Respondent's disallowance of three quarters of his salary is unreasonable. The salary deduction…

1Opinion of the Court

Dr. Pepper Bottling Company, Inc. v. Commissioner.

Dr. Pepper Bottling Co. v. Commissioner

Docket No. 4453-65.

United States Tax Court

T.C. Memo 1968-13; 1968 Tax Ct. Memo LEXIS 282; 27 T.C.M. (CCH) 73; T.C.M. (RIA) 68013;

January 22, 1968. Filed

Respondent disallowed a large portion of the salary paid by petitioner to its president and deducted in its return for the fiscal year ended February 29, 1964. The president had not received any salary for many years because of petitioner's financial situation but performed valuable executive services for petitioner throughout the years and in the year at…

2Cases cited9 opinions

  1. Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
  2. Ben Perlmutter and Bernice Perlmutter v. Commissioner of Internal Revenue, the Perlmutters, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1967
  3. Perlmutter v. CommissionerUnited States Tax Court · 1965
  4. L. Schepp Co. v. CommissionerUnited States Board of Tax Appeals · 1932
  5. Miller Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1945

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