MEL DAR CORPORATION, a corporation, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. Coy BURNETT and Mildred K. Burnett, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent, 309 F.2d 525

Summary

Using the accrual method of accounting, petitioner corporation filed tax returns for several different fiscal years. Respondent IRS commissioner assessed against petitioner corporation deficiencies in income and excess profits taxes. Petitioners sought redetermination of the deficiencies in the tax court. The petitions were consolidated for trial in the due to common issues of fact and law. After decisions favorable to respondent, petitioners timely filed petitions for review. On appeal, the court stated that petitioners' acts involved no ingenious scheme for using existing business forms as vehicles solely for the purpose of avoiding taxes. Moreover, petitioners' amendment to the lease had ample business purpose.