Union Equity Cooperative Exchange v. Commissioner
United States Tax Court
Petitioner was a nonexempt cooperative in its taxable year 1963 and an exempt cooperative in its taxable year 1964. In each year petitioner distributed a patronage dividend to its patrons and a dividend on capital stock to its stockholders.
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Petitioner was a nonexempt cooperative in its taxable year 1963 and an exempt cooperative in its taxable year 1964. In each year petitioner distributed a patronage dividend to its patrons and a dividend on capital stock to its stockholders. Held: (1) In its taxable year 1963 petitioner could not charge the dividend on capital stock solely to nonmember earnings, but had to charge such dividend to net earnings realized from member business and to net earnings realized from nonmember business in proportion to the business transacted with members and nonmembers respectively. (2) Respondent was…
1Opinion of the Court
OPINION
Forrester, Judge:
Respondent has determined deficiencies in petitioner’s income tax of $81,267.77 and $138,164.30 for the taxable years 1961 and 1963, respectively. Petitioner does not contest certain of the adjustments which respondent has made in petitioner’s taxable income for the taxable year 1963. The questions we must resolve are: (1) Whether for the taxable year 1963 petitioner may charge dividends on its capital stock solely to net earnings arising from its nonmember business; (2) whether because of his inaction with respect to prior taxable years, respondent is now equitably…
2Cases cited45 opinions
- Polachek v. CommissionerUnited States Tax Court · 1954
- Rose v. CommissionerUnited States Tax Court · 1970
- George R. Tollefsen and Margaret A. Tollefsen v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1970
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Neri v. CommissionerUnited States Tax Court · 1970
40 more not listed; retrieve them via the Exa API.
3Cited by44 opinions
- Pesch v. CommissionerUnited States Tax Court · 1982
- Union Equity Cooperative Exchange v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1973
- Thomas v. CommissionerUnited States Tax Court · 1989
- Pekar v. CommissionerUnited States Tax Court · 1999
- Yale Ave. Corp. v. CommissionerUnited States Tax Court · 1972
39 more not listed; retrieve them via the Exa API.