-27-
relevant text are in the setting of former section 233. Only one
case discusses the text of section 874(a), and no case discusses
the predecessors of that section.
B. Anglo-Am. Direct Tea Trading Co.
In the seminal case of Anglo-Am. Direct Tea Trading Co. v.
Commissioner, 38 B.T.A. 711 (1938), the taxpayer was a foreign
corporation with no offices or agents in the United States, and
it did not transact any business in the United States. During
its taxable years ended November 30, 1932 and 1933, the taxpayer
received gross income in the form of dividends from a wholly
owned domestic corporation. In March 1935, the Commissioner
learned of the dividends, determined that the taxpayer had not
filed Federal income tax returns for its taxable years of
receipt, and discussed this matter with one of the taxpayer’s
officers. On or about April 15, 1935, without informing the
taxpayer that he was doing so, the Commissioner’s revenue agent
prepared substitute Federal income tax returns for those taxable
years of receipt. Before the substitute returns were accepted by
the Commissioner, the taxpayer on April 18, 1935, filed
delinquent Federal income tax returns that included the dividends
in its gross income and claimed corresponding deductions for
11(...continued)
the Secretary’s regulations construing the relevant text did not
state until 1990 that a timely filed return was required as a
condition to a foreign corporation’s deducting its expenses.
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011