JJJ Corp. v. United States

This action was brought for the refund of an accumulated earnings tax penalty assessed pursuant to sections 531 et seq. of the Internal Revenue Code of 1954. The case comes before the court on plaintiffs exceptions to the recommended decision of Trial Judge Francis C. Browne. After considering the briefs and exceptions of the parties, and after hearing oral argument, we have concluded that we agree with the trial judge’s opinion, which is set forth infra, as supplemented and modified by the following.*

The taxpayer’s fiscal year ended August 31, 1970. In holding that the plaintiff corporation…