Rubin v. Commissioner
United States Tax Court
Petitioner obtained an option to purchase a majority interest in Dorman Mills, a corporation engaged in the manufacture of fabrics. At approximately the same time, he and his two brothers created a corporation, Park, in which he owned 70 percent of the stock. Park and Dorman Mills entered into a contract pursuant to which petitioner managed the latter. Dorman Mills paid management service fees to Park for the work done by petitioner.
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Petitioner obtained an option to purchase a majority interest in Dorman Mills, a corporation engaged in the manufacture of fabrics. At approximately the same time, he and his two brothers created a corporation, Park, in which he owned 70 percent of the stock. Park and Dorman Mills entered into a contract pursuant to which petitioner managed the latter. Dorman Mills paid management service fees to Park for the work done by petitioner. Held, in substance petitioner, not Park, earned the management service fees paid by Dorman Mills.
1Opinion of the Court
Fay, Judge:
Respondent determined deficiencies of $22,521.72 and $15,762.67 in petitioners’ income tax for the taxable years 1960 and 1961, respectively. By amendment to his answer, respondent requested an increase of $9,541.33 in the deficiency for the taxable year 1961. Respondent concedes that the deficiency determined for the taxable year 1960 should be reduced by $16,549.68. The deficiencies presently asserted, therefore, are $5,872.041 and $25,304 for the taxable years 1960 and 1961, respectively.
Prior to the trial herein, petitioners conceded one of the issues raised by the pleadings.…
2Cases cited7 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lucas v. EarlSupreme Court of the United States · 1930
- Benjamin D. And Madeline Prentice Gilbert v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
- Helvering v. GregoryCourt of Appeals for the Second Circuit · 1934
- National Investors Corporation v. HoeyCourt of Appeals for the Second Circuit · 1944
2 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Achiro v. CommissionerUnited States Tax Court · 1981
- Rubin v. CommissionerUnited States Tax Court · 1971
- Richard Rubin and Helene Rubin v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1972
- Johnson v. CommissionerUnited States Tax Court · 1982
- American Sav. Bank v. CommissionerUnited States Tax Court · 1971
38 more not listed; retrieve them via the Exa API.