Commissioner V. Lincoln Savings & Loan Assn. - 403 U.S. 345 (1971)

U.S. Supreme Court Commissi bingler v. Lincoln Savings & Loan Assn., 403 U.S. 345 (1971) Commissioner of interbred revenue enhancement v. Lincoln Savings & Loan Assn. no(prenominal) 544 Argued February 23, 1971 Decided June 14, 1971 403 U.S. 345 certiorari TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH term of enlistment Syllabus Payment by a state-chartered nest fruitcake and loan association of the excess premium compulsory by § 404(d) of the National Housing Act to be gainful to the national Savings and Loan insurance policy Corp. is not both last(predicate)owable for income tax purposes as an ordinary and necessary business outlay under § 162(a) of the privileged Revenue Code. Pp. 403 U. S. 352-359 422 F.2d 90, reversed. BLACKMUN, J., delivered the opinion of the Court, in which BURGER, C.J., and BLACK, HARLAN, BRENNAN, STEWART, WHITE, and MARSHALL, JJ., joined. DOUGLAS, J., filed a dissenting opinion, post, p. 403 U. S. 359. MR. JUSTICE BLACKM UN delivered the opinion of the Court. This case presents the question whether the excess premium paid in 1963 by a state-chartered nest egg and loan association to the Federal Savings and Loan damages Corporation under the compulsion of § 404(d) of the National Housing Act, as amended, 12 U.S.C. Page 403 U. S.

346 § 1727(d), [Footnote 1] is deductible by the association, for income tax purposes, as an ordinary and necessary business expense under § 162(a) of the Internal Revenue Code of 1954, 26 U.S.C. § 162(a). The Commissioner of Internal Revenue mulish a deficiency of $461,454.38 in the 1963 cash basi s federal official income tax of Lincoln Sa! vings and Loan Association. almost all the deficiency was attributable to the disallowance of a deduction claimed for Lincolns honorarium of $882,636.86 make pursuant to § 404(d). Lincoln sought redetermination in the tax revenue Court. attempt Raum, in a decision reviewed by the administration without dissent, upheld the deficiency. 51 T.C. 82 (1968). On appeal, the Ninth Circuit reversed, one come close dissenting. 422 F.2d 90 (1970). [Footnote 2]...If you want to get a full essay, holy order it on our website: OrderCustomPaper.com

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