Egan, Inc. v. Commissioner of Internal Revenue

WOODROUGH, Circuit Judge.

Egan, Inc., a taxpayer corporation, petitioner herein, seeks reversal of the decision of the Tax Court entered May 9, 1955, (unreported) upholding determination of the Commissioner that the corporation was availed of in 1948 for the purpose of preventing the imposition of surtax upon its sole stockholder, Henry G. Egan, through the medium of permitting earnings or profits to accumulate instead of being distributed, and sustaining surtax imposed under Section 102 of the Internal Revenue Code of 1939, 26 U.S.C.A. Sec. 102(a) and (c). 1

The Commissioner’s position was…