Affiliated Foods, Inc. v. Comm'r
United States Tax Court
P, a wholesale food purchasing cooperative, holds one or more food shows a year at which member stores and vendors selling to P meet. The vendors offer special show discounts to member stores placing orders with P for the vendors' products at the food shows. The special discount sometimes takes the form of a cash payment from the vendor to the member store based on the quantity of the vendor's products ordered.
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P, a wholesale food purchasing cooperative, holds one or more food shows a year at which member stores and vendors selling to P meet. The vendors offer special show discounts to member stores placing orders with P for the vendors' products at the food shows. The special discount sometimes takes the form of a cash payment from the vendor to the member store based on the quantity of the vendor's products ordered. Vendors not bringing currency to the shows obtain cash for those payments from promotional allowance accounts established by the vendors with P or from checks given to P and cashed by…
1Opinion of the Court
HALPERN, Judge:
By notice of deficiency dated April 22, 2004, respondent determined deficiencies in petitioner’s Federal income tax of $143,978, $166,493, and $11,101 for petitioner’s taxable (fiscal) years ended September 30, 1991, October 2, 1992, and October 1, 1993, respectively (the audit years). Petitioner is a corporation operating on a cooperative basis (a purchasing cooperative), whose shareholder-patrons operate retail grocery stores. The issues for decision concern the proper treatment of certain payments made to petitioner’s shareholder-patrons at food shows petitioner conducted…
2Cases cited27 opinions
- Parklane Hosiery Co. v. ShoreSupreme Court of the United States · 1979
- Montana v. United StatesSupreme Court of the United States · 1979
- Commissioner v. SunnenSupreme Court of the United States · 1948
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Commissioner v. WilcoxSupreme Court of the United States · 1946
22 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Sunoco, Inc. v. United StatesUnited States Court of Federal Claims · 2016
- Affiliated Foods, Inc. v. Comm'rUnited States Tax Court · 2007
- Affiliated Foods, Inc., A Corporation v. CommissionerUnited States Tax Court · 2007
- Westcott v. Comm'rUnited States Tax Court · 2010