Case Name: SWANK & SON, INC., Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellant
Court: United States Court of Appeals for the Ninth Circuit
Jurisdiction: United States
Decision Date: 1975-08-11
Citations: 522 F.2d 981
Docket Number: No. 74-1131
Parties: SWANK & SON, INC., Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellant.
Judges: Before KOELSCH and DUNIWAY, Circuit Judges, and MURPHY, District Judge.
Reporter: Federal Reporter 2d Series
Volume: 522
Pages: 981–982

Head Matter:
SWANK & SON, INC., Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellant.
No. 74-1131.
United States Court of Appeals, Ninth Circuit.
Aug. 11, 1975.
Leonard J. Henzke, Jr., Atty. (argued), Tax Div., U. S. Dept, of Justice, Washington, D. C., for defendant-appellant.
Richard F. Gallagher (argued), Great Falls, Mont., for plaintiff-appellee.
The Honorable Thomas F. Murphy, Senior United States District Judge for the Southern District of New York, sitting by designation.

Opinion:
OPINION
Before KOELSCH and DUNIWAY, Circuit Judges, and MURPHY, District Judge.
PER CURIAM:
The question on this appeal is whether the District Judge erred in concluding that the cash bonus received by Taxpayer, a small business corporation under Subchapter S of the Internal Revenue Code of 1954 (26 U.S.C. § 1371 et seq.) and the lessor in an oil and gas lease, did not constitute "personal holding company income" under 26 U.S.C. § 1372(e)(5) as it read in 1965, and hence did not operate to terminate Taxpayer's election to be taxed as a small business corporation.
Having carefully considered the matter, we are convinced that the answer is "no" and approve and adopt the well- considered opinion of Judge Smith appearing in 362 F.Supp. 897 (D.Mont. 1973).
Affirmed.