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Skarda v. Commissioner, 27 T.C. 137, 144 (1956), affd. 250 F.2d
429 (10th Cir. 1957); sec. 301.7701-1(c), Proced. & Admin. Regs.1
Federal law, on the other hand, determines how the entity is to
be taxed. See Burk-Waggoner Oil Association v. Hopkins, 269 U.S.
110 (1925); Carver v. United States, 188 Ct. Cl. 202, 412 F.2d
233 (1969); Stoody v. Commissioner, supra at 716-717; sec.
301.7701-1(c), Proced. & Admin. Regs.
Under Alabama law, a corporation exists when the articles of
incorporation are filed. Ala. Code sec. 10-2B-2.03(a) (1975).
Petitioner's certificate of incorporation was filed with the
proper authorities in Alabama on January 20, 1971; thus, peti-
tioner began to exist on that date as a separate body authorized
to do business in Alabama.
Although the State of Alabama has conferred the label of
"corporation" on petitioner, that does not, per se, control its
status for Federal tax purposes. See section 301.7701-1(c),
Proced. & Admin. Regs., which holds open the possibility that a
State-chartered corporation could also be classified a trust for
Federal tax purposes.
Section 7701(a)(3) defines the term "corporation" to include
"associations, joint-stock companies, and insurance companies."
Oftentimes, definitional problems arise where an entity without a
1The cited Federal tax regulation makes clear that it defers
to local law to determine the rights and obligations that members
of an organization have among themselves and with third parties.
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