JLM, Inc. v. Meehan

A bunch of the yups were whooping it up in the Sadies Lounge Saloon;

The kid that handles the music-box was hitting a jag-time tune;

Back of the bar, inspecting the books, the examiner rose to say,

“If you let them dance on the bar-room floor, you’ve got a cabaret.” *

The question presented in this case is whether the examiner was right. In order to decide this, the rarefied law of taxation must focus both on textual analysis and “the facts of life in the earthy world of night club entertainment.” Stevens v. United States, 302 F.2d 158, 162 (5th Cir. 1962). This case involves Sadies Lounge, a now…