Elm City Cotton Mills v. Commissioner

Board of Tax Appeals

Elm City Cotton Mills v. Commissioner

5 B.T.A. 309

CourtUnited States Board of Tax Appeals

DecidedOctober 30, 1926

DocketDocket No. 7636

StatusPublished

This text of 5 B.T.A. 309 (Elm City Cotton Mills v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Elm City Cotton Mills v. Commissioner, 5 B.T.A. 309 (bta 1926).

Pincite

Opinion

[312]*312OPIXION.

Tkammell :

The benefits rendered by the association were the physical examination of all of the petitioner’s employees and their families, the payment of $100 for burial expenses of deceased employees,. and the furnishing of nurses to employees in the case of illness. Of these the physical examinations and burial payments were benefits not previously offered to its employees by the petitioner. The nursing service previously furnished by the petitioner to its employees was, under the contract, taken over and rendered by the association.

The expenditures made in connection with furnishing nurses and hospital facilities to sick employees and other benefits derived from the association produce a direct benefit to the petitioner. The method by which such services are furnished — directly by the employer itself or through another as in this case — does not change the result. In this case there was a material saving in expenses, since the petitioner’s hospital budget of about $12,000 was almost eliminated, in addition to the other direct benefits.

It is our opinion that an expenditure made under the conditions presented by this case is one which can be considered as ordinary and necessary expense of the business of this petitioner. Appeal of Poinsett Mills, 1 B. T. A. 6.

Judgment will be entered on 15 days’ notice, under Rule 50.

Free access — add to your briefcase to read the full text and ask questions with AI

[312]*312OPIXION.

Tkammell :

The benefits rendered by the association were the physical examination of all of the petitioner’s employees and their families, the payment of $100 for burial expenses of deceased employees,. and the furnishing of nurses to employees in the case of illness. Of these the physical examinations and burial payments were benefits not previously offered to its employees by the petitioner. The nursing service previously furnished by the petitioner to its employees was, under the contract, taken over and rendered by the association.

The expenditures made in connection with furnishing nurses and hospital facilities to sick employees and other benefits derived from the association produce a direct benefit to the petitioner. The method by which such services are furnished — directly by the employer itself or through another as in this case — does not change the result. In this case there was a material saving in expenses, since the petitioner’s hospital budget of about $12,000 was almost eliminated, in addition to the other direct benefits.

It is our opinion that an expenditure made under the conditions presented by this case is one which can be considered as ordinary and necessary expense of the business of this petitioner. Appeal of Poinsett Mills, 1 B. T. A. 6.

Judgment will be entered on 15 days’ notice, under Rule 50.

Cite This Page — Counsel Stack

Bluebook (online)

5 B.T.A. 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elm-city-cotton-mills-v-commissioner-bta-1926.