Pacific Coast Music Jobbers, Inc. v. Commissioner of Internal Revenue

GOLDBERG, Circuit Judge:

We are asked to construe a contractual arrangement purportedly falling under the tax aegis Subchapter S. 1 In construing the underlying contracts and their tax implications, we must view the situation practically and realistically. There are also technical considerations. A taxpayer cannot simply enter a telephone booth and change into his Subchapter S suit. He must file a specific written election to be so taxed. It is admitted that appellant taxpayer did not so elect; nevertheless, he seeks the power to leap tall tax requirements at a single bound. We conclude,…