Catholic News Publishing Co. v. Commissioner
United States Tax Court
For several years prior to 1943 petitioner's president served as treasurer and president of the Catholic Press Association, of which petitioner was a member. An extended controversy arose, based on a claim by the association that petitioner's president in his official capacity as treasurer of the association had failed to invest certain association funds which otherwise would have accrued considerable interest.
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For several years prior to 1943 petitioner's president served as treasurer and president of the Catholic Press Association, of which petitioner was a member. An extended controversy arose, based on a claim by the association that petitioner's president in his official capacity as treasurer of the association had failed to invest certain association funds which otherwise would have accrued considerable interest. The president stoutly denied any malfeasance or personal liability to the association and refused to pay the claim. Subsequently the controversy began to have an adverse effect on…
1Opinion of the Court
OPINION.
AruNdell, Jvdge:
To look upon the petitioner’s expenditure of the $2,871.24 simply as a payment to its president, as does the respondent, is to isolate a small part of an entire transaction and obscure the real question in this case. That question, as we see it, is whether the expense incurred in settling a controversy injurious to petitioner’s business and damaging to its reputation and standing can qualify as an ordinary and necessary business expense.
The facts are that Eidder became an officer of the association solely because of the petitioner’s membership in it and to further the…
2Cases cited3 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Scruggs-Vandervoort-Barney, Inc. v. CommissionerUnited States Tax Court · 1946
- Gilt Edge Textile Corp. v. CommissionerUnited States Tax Court · 1947
3Cited by45 opinions
- Lohrke v. CommissionerUnited States Tax Court · 1967
- Towers v. CommissionerUnited States Tax Court · 1955
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
- Snow v. CommissionerUnited States Tax Court · 1958
- Dinardo v. CommissionerUnited States Tax Court · 1954
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