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MERIDIAN WOOD PRODUCTS CO., INC. v. UNITED STATES

No. 82-3668.

725 F.2d 1183 (1984)

MERIDIAN WOOD PRODUCTS CO., INC., a corporation, Plaintiff-Appellant, v. UNITED STATES of America, Defendant-Appellee. Harry F. LENTON and Colleen Lenton, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided February 13, 1984.

Attorney(s) appearing for the Case

William H. Kinsey, Schwabe, Williamson, Wyatt, Moore & Roberts, Portland, Or., for plaintiffs-appellants.

Glenn L. Archer, Jr., Asst. Atty. Gen., Michael L. Paup, Chief, Appellate Sec., Libero Marinelli, Jr., Dept. of Justice, Washington, D.C., for defendant-appellee.

Before FLETCHER and ALARCON, Circuit Judges, and JAMESON, District Judge.

ALARCON, Circuit Judge:

In these consolidated appeals, taxpayers Harry and Colleen Lenton, and Meridian Wood Products, Inc. (Meridian) appeal from a judgment of the district court. The district court upheld the Internal Revenue Service's (IRS) disallowance of certain business expense deductions taken by Meridian. The court also determined that Meridian's reimbursement of these expenses to the Lentons constituted constructive dividends to them.

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