United States v. Trust No. B. I. 35, Bank of America Nat. Trust & Savings Ass'n
Opinion
Lead Opinion
Denman, J.
This is an appeal from a judgment of the district court for refund of taxes paid by the appellee, the court holding invalid the assessment against and collection from appellee of taxes on income for the tax years 1931 to 1933, inclusive, as earned by an association, and also the assessment of and collection as from an t association an excise tax on dividends paid in 1933 to the holders of certificates of beneficial interest in the trust. The district court held the trust income was that of the traditional type of trusts and not of a business trust as defined by the Supreme Court in Morrissey v. Commissioner, 296 U.S. 344, 357 , 56 S.Ct. 289, 295 , 80 L.Ed. 263 , in the following language:
On the argument it was not questioned that the trust was organized in corporate form. Cf. Morrissey v. Commissioner, supra, 296 U.S. 359 , 56 S.Ct. 289 , 80 L.Ed. 263 ; Helvering v. Combs, 296 U.S. 365, 368 , 56 S.Ct. 287 , 80 L.Ed. 275 . The trustee is_to act under the direction of a so-called advisory board which has the power not only to advise but to direct the trustee in the conduct of the enterprise created by the trust. Here was centralized management.