THOMAS E. BASHAM CO. v. LUCAS


21 F.2d 550 (1927)

THOMAS E. BASHAM CO. v. LUCAS, Collector of Internal Revenue.

District Court, W. D. Kentucky, at Louisville.

July 25, 1927.


Attorney(s) appearing for the Case

Beckham, Hamilton & Beckham and Elwood Hamilton, all of Louisville, Ky., for plaintiff.

T. J. Sparks, Dist. Atty., of Greenville, Ky., A. W. Gregg, Gen. Counsel, and John H. Pigg and John A. McCann, Sp. Attys., Bureau of Internal Revenue, all of Washington, D. C., for defendant.


DAWSON, District Judge.

The sole question involved in this case is whether the plaintiff, a corporation engaged in the advertising agency business, was entitled to be classified as a personal service corporation under the provisions of section 200 of the Revenue Act of 1918 (Comp. St. § 6336 1/8a). The applicable part of that section reads as follows:

"The term `personal service corporation' means a corporation whose income is to be ascribed primarily...

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