Marshall v. Commissioner

Decided January 17, 1939

United States Board of Tax Appeals · decided 1939-01-17

1. On the facts, held that during the years 1932, 1933, and 1934 petitioner was an association taxable as a corporation. 2. Held: that such fiduciary return was an information return and not a return of the tax within the meaning of subdivision (c) of section 275, Revenue Act of 1932; (2) that subdivision (c) provides an exception to the general rule stated in subdivision (a) of the same section; and (3) that assessment and collection of the taxes due from…

Cited by 12 later decisions — most recently November 1945

Relies on Vanderbilt Trust v. Commissioner · City Bank Farmers Trust Co. v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1939-01-17

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Leech,

¶1dissenting: In the recent cases of City Bank Farmers Trust Co., 39 B. T. A. 29, and George Vanderbilt Trust, 36 B. T. A. 967, the Board, in disallowing deductions of certain items as business expenses, supported that action primarily, if not entirely, on the premise that these trusts were not then in business. In this proceeding, where neither the actual nor potential activities of the petitioning trust seemed to have been as broad or businesslike, the Board sustains its finding that this trust is taxable as a corporation upon the principal ground that it was in business.

¶2I think the same measure should apply in both situations. And, having thus restricted the meaning of “business” in the first mentioned class of cases, it should be similarly restricted here. That, it seems to me, would require a finding that the petitioner was taxable as a trust and not as an association.