Case Name: Appeal of PEERLESS ENGRAVING CO.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-01-26
Citations: 3 B.T.A. 464
Docket Number: Docket No. 3626
Parties: Appeal of PEERLESS ENGRAVING CO.
Judges: Before James, LittletoN, Smith, and Trussell.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 3
Pages: 464–467

Head Matter:
Appeal of PEERLESS ENGRAVING CO.
Docket No. 3626.
Submitted October 20, 1926.
Decided January 26, 1926.
Charles B. Lawson, Esq., for the taxpayer.
J. Arthur Adams, Esq., for the Commissioner.
Before James, LittletoN, Smith, and Trussell.

Opinion:
OPINION.
Littleton:
From the evidence before ns, we are of the opinion that the taxpayer is not entitled to classification as a personal service corporation. It is true that the principal and only stockholder was regularly engaged in the active conduct of the business, but it can not be said that the taxpayer's income was due primarily to his activities. Both capital and the activities of other employees were material income-producing factors.