Lewis Food Co. v. United States

BICKS, District Judge*

Plaintiff, a California corporation, brings this action for refund of income tax alleged to have been erroneously assessed, 26 U.S.C.A. § 7422; 28 U.S.C.A. § 1346(a) (1).

The Lewis Food Company manufactures and distributes dog and cat food. It paid D. B. Lewis, its President and sole stockholder, a salary of $120,000 for the fiscal years ending Júne 30, 1952, 1953, and 1954, and $80,000 for the fiscal year ending June 30,1955.

*612The plaintiff deducted these amounts as salary expenses, 26 U.S.C.A. § 162(a) (1) [§ 23(a) (1) (A), Int.Rev.Code of 1939]. The Internal Revenue…