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or unreal. And the Court has recognized that if the corporation
is merely an empty shell, which has no assets and has not
conducted any business activity, then it is not a separate
taxable entity. Blue Flame Gas Co. v. Commissioner, 54 T.C. 584,
599 (1970); see also Barker v. Commissioner, T.C. Memo. 1993-280
(citing Bystry v. United States, 596 F. Supp. 574, 579 (W.D. Wis.
1984) and Blue Flame Gas Co. v. Commissioner, supra). But a
taxpayer’s claim that his corporation should be disregarded will
be closely scrutinized. Strong v. Commissioner, 66 T.C. 12, 25
(1976), affd. without published opinion 553 F.2d 94 (2d Cir.
1977). And a taxpayer’s choice to adopt the corporate form
because of its advantages also requires the acceptance of its tax
disadvantages. See Burnet v. Commonwealth Improv. Co., 287 U.S.
415 (1932).
Whether a corporation is organized for a business purpose or
carries on substantial business activity is determined from the
facts and circumstances of each case. See Strong v.
Commissioner, supra at 24-25; Ross Glove v. Commissioner, 60 T.C.
569, 589 (1973; Weigman v. Commissioner, 47 T.C. 596, 605 (1967),
affd. per curiam 400 F.2d 584 (9th Cir. 1968); Bystry v. United
States, supra at 578. The Court has stated that the “degree of
corporate purpose and activity requiring recognition of the
corporation as a separate entity is extremely low.” Strong v.
Commissioner, supra at 24. The determination of whether a
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