Marvin Berry and Elizabeth Jane Berry, Alfred J. Berry and Jeanne M. Berry v. Commissioner of Internal Revenue

This appeal from the Tax Court involves two questions: first, whether the corporate tax return of Edison Vegetable Growers, Inc., was timely filed, and, second, whether the Commissioner was empowered by law to determine a deficiency for a lesser period than a year.

The Commissioner determined, after he had examined the records of Vegetable Growers, that there was a deficiency in the taxes paid by the corporation for the period from March 1, 1949, to October 31, 1949. This decision was based upon the disallowance of loss upon the sale of assets of Vegetable Growers to certain stockholders. A penalty for failure to file the return within time was also imposed. This determination was based upon the theory that the return should have been filed within two and one-half months after October 31, 1949. The petitions for review were based upon the contention that the corporation did not go out of existence before March 1, 1949, and on the further ground that the Commissioner had no legal power or authority to determine a deficiency for a period less than a year.

The case was heard by the Tax Court, which held for the Commissioner and against petitioners. There was a stipulation filed…