U.S. Court of Appeals for the Fifth Circuit, 1970

Alicia Ruth, Inc. v. Commissioner of Internal Revenue

U.S. Court of Appeals for the Fifth Circuit · Decided January 19, 1970 · Brown, Coleman, Clark

421 F.2d 1393 (Federal Reporter, Second Series)

Counsel

Stanley P. Kaplan, Miami, Fla., for petitioner-appellant., Johnnie M. Walters, Asst. Atty. Gen., Lee A. Jackson, Issie L. Jenkins, Benjamin M. Parker, Harry D. Shapiro, John P. Burke, Attys., Tax Div., U. S. Dept. of Justice, K. Martin Worthy, Chief Counsel, Christopher J. Ray, Atty., I.R.S., Washington, D. C., for respondent-appellee.

Cases that cite this one

2 later published cases cite this decision.

Woesner Abstract & Title Co. v. Commissioner (United States Tax Court 1983)
M. J. Laputka & Sons, Inc. v. Commissioner (United States Tax Court 1981)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion

PER CURIAM:

The corporate taxpayer appeals from a decision of the Tax Court (memoranda opinion 28 T.C. M 262) disallowing as a deduction the amounts paid as alleged compensation to a fifty percent stockholder. As all of the witnesses were interested financially in the outcome of the case and there were many circumstances, doubts and uncertainties about the arrangement under which the stockholder claimed he was serving the corporation by steering customers into this Miami Beach ladies shop, the trier of fact was entitled to conclude that the amount disbursed was not compensation. Consequently, disallowing it altogether was not error. Thus no employment relationship was established.

Affirmed.

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