Wm. J. Lemp Brewing Co. v. Commissioner
United States Tax Court
1. Petitioner during the taxable periods involved was a personal holding company. 2. Petitioner has failed to establish that its failure to file personal holding company returns, Form 1120-H, was due to reasonable cause and the imposition of the 25 per cent penalty for each of the taxable years involved is sustained. 3. The amounts the petitioner is entitled to deduct as reasonable compensation paid to its two officers in the respective taxable years in question determined.…
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1. Petitioner during the taxable periods involved was a personal holding company. 2. Petitioner has failed to establish that its failure to file personal holding company returns, Form 1120-H, was due to reasonable cause and the imposition of the 25 per cent penalty for each of the taxable years involved is sustained. 3. The amounts the petitioner is entitled to deduct as reasonable compensation paid to its two officers in the respective taxable years in question determined. 4. The amounts deductible as ordinary and necessary business expenses representing promotional and travel expenditures…
1Opinion of the Court
OPINION.
LeMuse, Judge:
The first issue presents the question whether, during the taxable years involved, the petitioner was a personal holding company, as determined by the respondent, or a joint venture, as contended by the petitioner. There can be no dispute that the petitioner meets the two requirements specified in section 501 of the Internal Eevenue Code for classification as a personal holding company in the event it is held not to be a joint venture; The burden is upon the petitioner to establish the existence of a joint venture. A joint venture has been defined to be a “special…
2Cases cited15 opinions
- Wilson v. CommissionerUnited States Tax Court · 1948
- Girard Inv. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1941
- Tompkins v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1938
- Commissioner of Internal Revenue v. Clarion Oil Co.Court of Appeals for the D.C. Circuit · 1945
- Wilson Bros. & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1948
10 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
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- Common Cause v. CommissionerUnited States Tax Court · 1999
- ACME Music Co. v. Internal Revenue Service (In Re ACME Music Co.)United States Bankruptcy Court, W.D. Pennsylvania · 1996
- Mills, Incorporated v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1957
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