Pacific Grains, Inc., an Oregon Corporation v. Commissioner of Internal Revenue

In May of 1965, a notice of deficiency was mailed to the taxpayer asserting deficiencies for the fiscal years ending on January 31st of 1963 and 1964. Within the allotted time period the taxpayer filed a petition for redetermination with the Tax Court pursuant to Section 6213 of the Internal Revenue Code of 1954. 26 U.S.C. § 6213 . The Tax Court entered a decision in favor of the Commissioner in January of 1967. The taxpay er petitioned for review within the time allotted by Section 7483 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 7483 ) and this Court has jurisdiction by reason of Section 7482 of that Code. 26 U.S.C. § 7482 .

The taxpayer Pacific Grains, Inc., an Oregon corporation, has its principal place of business in the State of Oregon. During the years involved the taxpayer was engaged in the business of the purchase, sale, storage; distribution and brokerage of grain and grass seed. The corporation was formed in 1955 by Robert R. Rodgers and another individual. In 1959 Rodgers purchased the stock of his fellow incorporator and became the sole owner of the taxpayer. That relationship continued to exist throughout the period of time covered by this case. Originally…