A. F. Gallun & Sons Corp. v. United States

DECISION and ORDER

MYRON L. GORDON, District Judge.

This case was tried to the court earlier this year, and the parties have submitted post-trial briefs. The issue I must resolve is whether the plaintiff corporation is liable for the accumulated earnings tax imposed by the defendant for the plaintiff’s fiscal year ended September 30, 1974. The plaintiff seeks a refund of $147,096, the amount of the tax imposed, plus statutory interest.

Imposition of the accumulated earnings tax is authorized by 26 U.S.C. § 531, upon corporations which, under § 532, withhold the payment of dividends and other…