McClintock-Trunkey Co. v. Commissioner
United States Tax Court
1. Employer contributions to an exempt pension and profit-sharing trust in excess of the agreement's terms held voluntary and not deductible under section 23 (p) (1) (C) or (D), Internal Revenue Code. Wooster Rubber Co., 14 T. C. 1192, followed. 2. Dues paid to associations whose activities are devoted in substantial part to lobbying and propaganda purposes held not deductible as ordinary and necessary expenses.
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1. Employer contributions to an exempt pension and profit-sharing trust in excess of the agreement's terms held voluntary and not deductible under section 23 (p) (1) (C) or (D), Internal Revenue Code. Wooster Rubber Co., 14 T. C. 1192, followed. 2. Dues paid to associations whose activities are devoted in substantial part to lobbying and propaganda purposes held not deductible as ordinary and necessary expenses. Section 23 (q) (2), Internal Revenue Code. 3. Additions to petitioner's reserve for bad debts held, on facts, properly disallowed by respondent.
1Opinion of the Court
OPINION.
Opper, Judge:
Petitioner’s contributions to its employees’ profit-sharing trust in excess of the amounts called for by the previously approved plan are a clearly forbidden deduction under section 23 (p) (1) (C), Internal Revenue Code.1 Wooster Rubber Co., 14 T. C. 1192, reversed on other grounds, Commissioner v. Wooster Rubber Co. (C. A. 6), 189 F. 2d 878; Irwin B. Schwabe Co., 17 T. C. 1215. The trust agreement expressly provides for contributions of 5 per cent of petitioner’s net profits and no payment in excess of that amount would be made in accordance with the plan so as to meet…
2Cases cited7 opinions
- Textile Mills Securities Corp. v. CommissionerSupreme Court of the United States · 1941
- Black Motor Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
- First-Mechanics Nat. Bank v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1940
- Wooster Rubber Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Roberts Dairy Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1952
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3Cited by3 opinions
- Cammarano v. United StatesSupreme Court of the United States · 1959
- Cammarano v. United StatesSupreme Court of the United States · 1959
- McClintock-Trunkey Co. v. CommissionerUnited States Tax Court · 1952