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

U.S. Supreme Court Commissi whizzr v. Lincoln Savings & Loan Assn., 403 U.S. 345 (1971) Commissioner of inwrought revenue enhancement v. Lincoln Savings & Loan Assn. no 544 Argued February 23, 1971 Decided June 14, 1971 403 U.S. 345 certiorari TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH lap Syllabus Payment by a state-chartered nest clump 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 each last(predicate)owable for income tax purposes as an ordinary and necessary business disbursal under § 162(a) of the inner(a) 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 BLACKMUN delivered the opinion of th e 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 indemnity 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 contumacious a deficiency of $461,454.38 in the 1963 cash basis national official in come tax of Lincoln Savings and Loan Associa! tion. to the highest degree all the deficiency was attributable to the disallowance of a deduction claimed for Lincolns defrayment of $882,636.86 make pursuant to § 404(d). Lincoln sought redetermination in the taxation Court. attempt Raum, in a decision reviewed by the judicatory 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: BestEssayCheap.com

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