Golconda Mining Corporation v. Commissioner of Internal Revenue, Golconda Mining Corporation v. Commissioner of Internal Revenue

Golconda Mining Corporation (Golconda), a publicly held Idaho corporation, has operated in the Coeur d’Alene mining district of that state for many years. An area approximately 30 miles long by 20 miles wide, the Coeur d’Alene has been recognized as one of the principal mining areas of the world for the production principally of lead, zinc, silver and by-products of copper and gold. In recent years it has produced almost half of the nation’s silver.

During the period involved in this case Golconda stock was listed on three stock exchanges in this country and one in Canada.

Golconda appeals from a decision of the United States Tax Court, 58 T.C. 139 and 58 T.C. 736 (Supplemental Opinion on motion for reconsideration), entered on September 27, 1972, insofar as it held that Golconda was liable for a deficiency in income tax due to the Commissioner for the year 1966. The Commissioner of Internal Revenue appeals from the decision of the Tax Court insofar as it held that Golconda was not subject to the tax imposed under the Internal Revenue Code of 1954, 26 U.S.C. §§ 531-537 , and particularly § 533, the “accumulated earnings” tax, for the years 1962 through 1965. The notices of…