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Dependable Packing Co. v. Commissioner

4 T.C.M. 1111, 1945 Tax Ct. Memo LEXIS 1
CourtUnited States Tax Court
DecidedDecember 29, 1945
DocketDocket Nos. 442 PT and 443 PT.
StatusUnpublished

This text of 4 T.C.M. 1111 (Dependable Packing Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dependable Packing Co. v. Commissioner, 4 T.C.M. 1111, 1945 Tax Ct. Memo LEXIS 1 (tax 1945).

Opinion

Dependable Packing Company, a Partnership, v. Commissioner. Dependable Packing and Provision Company, an Illinois Corporation, v. Commissioner.
Dependable Packing Co. v. Commissioner
Docket Nos. 442 PT and 443 PT.
United States Tax Court
1945 Tax Ct. Memo LEXIS 1; 4 T.C.M. (CCH) 1111; T.C.M. (RIA) 45379;
December 29, 1945
W. R. Brown and W. Robert Brown, for the petitioners. Irene F. Scott and R. E. Maiden, Jr., for the respondent.
OPPER

Memorandum Findings of Fact and Opinion

OPPER, Judge: By these consolidated proceedings Dependable Packing Company, a partnership, (hereinafter sometimes referred to as petitioner), seeks a review of respondent's disallowance of an amended claim for refund of $130,033.87 processing tax paid upon the processing of hogs 1 from November 5, 1933, through January, 1935, and in part of the months*2 of February and August, 1935; Dependable Packing and Provision Company, a corporation, seeks a review of respondent's disallowance of a refund of $2,348.05 of such taxes for the period October and November, 1935.

The primary issue, of course, is what amount, if any, the petitioners are entitled to receive as refunds of processing tax. The answer to this question is dependent upon the decision on motions to dismiss both cases for lack of jurisdiction; upon the effect to be given certain evidence pertaining to concerns asserted to be "representative"; and finally, upon consideration of the evidence of record in determining the ultimate question of where the burden of the tax fell.

The cases are presented upon pleadings, stipulation, and evidence adduced at the hearing.

Findings of Fact

The stipulated facts are hereby found accordingly. Together with other admissible material of record they disclose the following:

Petitioner was a partnership composed of Fred Sans, Samuel Chapman, Frank Penczek, and Charles Penczek, with its place of business at 3840 South Emerald Avenue, Chicago, Illinois. Petitioner*3 commenced business operations in May, 1932, and continued to operate until August 31, 1935. It did not slaughter hogs at any time during its period of business operations. The Empire Packing Company slaughtered all of the hogs here involved and collected killing charges from petitioner for so doing.

For each month of the period from November 5, 1933, to August 31, 1935, petitioner filed processing tax returns in its own name as processor for the hogs slaughtered for it by the Empire Packing Company. The amounts shown to be due by these returns were assessed against petitioner on the basis of these returns and were paid by checks drawn by the Empire Packing Company payable to the collector of internal revenue, as follows:

November, 1933$ 1,619.84
December, 19333,754.19
January, 19344,153.08
February, 19346,972.82
March, 19349,864.40
April, 19347,624.21
May, 193410,095.92
June, 193412,426.30
July, 19346,091.24
August, 193410,192.93
September, 19347,806.25
October, 19349,819.89
November, 193410,963.35
December, 193410,590.32
January, 193510,734.86
February, 19355,000.00
August, 19351,325.62
The amount of tax paid for*4 February, 1935, was 55.53 percent of the tax shown by the return to be due for that month, and the amount of the tax paid for August, 1935, was 25 percent of the tax shown by the return to be due for that month. The payments so made were credited on the records of the collector of internal revenue to the account of the petitioner.

During its period of operations the petitioner had no bank account in its own name. All moneys or checks received by petitioner were deposited in the bank account of the Empire Packing Company and were commingled with the moneys and accounts of the Empire Packing Company. All payments by check for hogs slaughtered by Empire Packing Company for the petitioner, amounts shown by returns to be due as processing tax with respect to this slaughter, and other expenses, were made by checks drawn on this account by the Empire Packing Company, and charges of the amounts of such checks were entered in the books of Empire Packing Company on an account denominated "Dependable Packing Company Account."

On August 31, 1935, by previous arrangement, the entire business, assets, properties, and ilabilities of the petitioner were taken over by the other petitioner, Dependable*5 Packing and Provision Company, a corporation under the laws of Illinois, organized August 24, 1935, for the specific purpose of acquiring, investing in, and owning the business, property, and assets of petitioner, and carrying on petitioner's business and discharging petitioner's liabilities. It carried on the business formerly operated by the partnership from September 1, 1935, until October, 1936, when it ceased business operations.

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Related

Webre Steib Co. v. Commissioner
324 U.S. 164 (Supreme Court, 1945)
Dependable Packing Co. v. Commissioner
1 T.C. 861 (U.S. Tax Court, 1943)
Stockton v. Commissioner
44 B.T.A. 514 (Board of Tax Appeals, 1941)
Standard Knitting Mills v. Commissioner
47 B.T.A. 295 (Board of Tax Appeals, 1942)

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Bluebook (online)
4 T.C.M. 1111, 1945 Tax Ct. Memo LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dependable-packing-co-v-commissioner-tax-1945.