Farmers Coop. Co. v. Commissioner
United States Tax Court
P, a farmers cooperative association, sought to qualify as an exempt cooperative association under sec. 521, I.R.C. 1954. R, by means of a revenue ruling, set an 85-percent patronage requirement by active capital stockholder, which standard was approved by the Eighth Circuit and this Court.
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P, a farmers cooperative association, sought to qualify as an exempt cooperative association under sec. 521, I.R.C. 1954. R, by means of a revenue ruling, set an 85-percent patronage requirement by active capital stockholder, which standard was approved by the Eighth Circuit and this Court. R, by means of a revenue procedure, attempted to set a 50-percent patronage requirement for each patron who was a capital stockholder and considered to meet the 85-percent test of the revenue ruling. Held: For purposes of sec. 521, I.R.C. 1954, any amount of patronage will be sufficient for a patron to be…
1Opinion of the Court
OPINION
GERBER, Judge:
This opinion is necessitated by a mandate, issued July 22, 1987, from thé U.S. Court of Appeals for the Eighth Circuit affirming in part, reversing in part, and remanding for proceedings consistent with their opinion rendered regarding an appeal from our opinion in Farmers Cooperative Co. v. Commissioner, 85 T.C. 601 (1985) (Farmers I).
In Farmers I we held that two separate cooperatives1 did not qualify as exempt cooperative associations under section 5212 because “substantially all” of their capital stock was not owned by producers who market their products or purchase…
2Cases cited5 opinions
- Bingham v. United StatesSupreme Court of the United States · 1935
- Co-Operative Grain & Supply Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1969
- West Central Cooperative v. United StatesCourt of Appeals for the Eighth Circuit · 1985
- Farmers Cooperative Co. v. CommissionerUnited States Tax Court · 1985
- Farmers Cooperative Company (Successor-In-Name to Farmers Co-Op Oil Company) v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1987
3Cited by2 opinions
- Farmers Coop. Co. v. CommissionerUnited States Tax Court · 1987
- Teller v. CommissionerUnited States Tax Court · 1992