D. & N. Auto Parts Co. v. Commissioner
United States Tax Court
Petitioner succeeded in 1940 to a partnership as "component corporation" under section 740 (b) (5), Internal Revenue Code. Computation of base period net income, involved in determining excess profits tax credit, included calculation of reasonable compensation to the former partners.
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Petitioner succeeded in 1940 to a partnership as "component corporation" under section 740 (b) (5), Internal Revenue Code. Computation of base period net income, involved in determining excess profits tax credit, included calculation of reasonable compensation to the former partners. Held, that the amounts determined by the Commissioner were reasonable, that amounts allowable for computation of "earned income credit" under section 25 (a), Internal Revenue Code, do not control, and that the validity of the deficiencies and the burden of proof are not affected by determination by the…
1Opinion of the Court
OPINION.
Disney, Judge:
The only question we have here is whether the Commissioner erred in computing excess profits tax for the taxable years by considering $10,400 per year the reasonable compensation of the partners during the base period years, in determining excess profits tax credit. The parties do not disagree as to the facts that the previous partnership was a component corporation within the meaning of section 740 (b) (1) (5), Internal Revenue Code, and that computations are required under section 742 (g), Internal Revenue Code, as if the partnership were a corporation; and both rely…
2Cases cited1 opinion
- Shield Co. v. CommissionerUnited States Tax Court · 1943
3Cited by8 opinions
- Brewster v. CommissionerUnited States Tax Court · 1976
- R. & J. Furniture Co. v. CommissionerUnited States Tax Court · 1953
- American Allsafe Co. v. CommissionerUnited States Tax Court · 1954
- Barney Mach. Co. v. CommissionerUnited States Tax Court · 1947
- Brewster v. CommissionerUnited States Tax Court · 1976
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