Pelton Steel Casting Co. v. Commissioner
United States Tax Court
Petitioner failed to divide and distribute accumulated earnings or profits during a taxable year when, as the record shows, such an accumulation was not reasonably necessary to meet any threat of unrest amongst its own employees, significant fluctuation in the level of its production or operating profits, or reasonably anticipated additions or improvements to its plant and equipment.
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Petitioner failed to divide and distribute accumulated earnings or profits during a taxable year when, as the record shows, such an accumulation was not reasonably necessary to meet any threat of unrest amongst its own employees, significant fluctuation in the level of its production or operating profits, or reasonably anticipated additions or improvements to its plant and equipment. The failure to so divide its earnings and profits was pursuant to a plan developed by its minority shareholder (20 per cent) by which petitioner would use the accumulated funds, as well as additional borrowed…
1Opinion of the Court
Fisher, Judge:
The instant proceedings involve the following deficiencies in surtaxes under section 102 of the 1939 Code determined by the respondent for the taxable years ended November 30, 1945 and 1946, respectively:
Year Amount
1945_$12,214.22
1946_ 69,746. 66
Respondent, on brief, conceded no deficiency for 1945.
The petition herein was filed on September 8, 1953, in response to a notice of deficiency1 mailed to petitioner on August 24, 1953. The cause was heard on December 1 and 2, 1955. Section 534 of the Internal Revenue Code of 1954 was amended by Act of August 11, 1955, ch. 805, secs. 4…
2Cases cited22 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Helvering v. Chicago Stock Yards Co.Supreme Court of the United States · 1943
- United Business Corporation v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1933
- J. L. Goodman Furniture Co. v. CommissionerUnited States Tax Court · 1948
- Gus Blass Co. v. CommissionerUnited States Tax Court · 1947
17 more not listed; retrieve them via the Exa API.
3Cited by72 opinions
- Faber Cement Block Co. v. CommissionerUnited States Tax Court · 1968
- Pelton Steel Casting Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1958
- American Metal Products Corp. v. CommissionerUnited States Tax Court · 1960
- Estate of Goodall v. CommissionerCourt of Appeals for the Eighth Circuit · 1968
- F. E. Watkins Motor Co. v. CommissionerUnited States Tax Court · 1958
67 more not listed; retrieve them via the Exa API.