Wild Wing Lodge v. Blacklidge, 4753.
Decision Date | 14 June 1932 |
Docket Number | No. 4753.,4753. |
Citation | 59 F.2d 421 |
Parties | WILD WING LODGE v. BLACKLIDGE, Collector of Internal Revenue. |
Court | U.S. Court of Appeals — Seventh Circuit |
Roger Sherman, Henry F. Tenney, Henry G. Miller, and John H. McBride, all of Chicago, Ill., for appellant.
George E. Q. Johnson, U. S. Atty., and John Potts Barnes, Gen. Counsel, Bureau of Internal Revenue, both of Chicago, Ill., for appellee.
Before ALSCHULER, EVANS, and SPARKS, Circuit Judges.
Appellant unsuccessfully brought suit against the collector of internal revenue to recover taxes alleged to have been unlawfully collected.
Appellant is an Illinois corporation, organized in 1914 to carry on a hunting club. It owns upwards of 800 acres of land in Mason county, Ill., used as a hunting preserve. Its membership is limited to seventeen. Its property at the time in question was worth about $135,000.
Article X of its by-laws provides:
During the tax year three memberships were sold, at approximately $6,000 each, to persons who were accepted as members, and who also paid $100 each to the club as a membership transfer fee. The price of the membership was in each case paid to the seller, or, if deceased, to his personal representatives, and no part of it was received by the club. On the assumption that the price paid was an initiation fee within the meaning of the statute, the statutory ten per cent. tax thereon was levied, and was paid by the club, which brought this suit for its refund.
Section 413(a) of the Revenue Act of 1928 (45 Stat. 864, 26 USCA § 872) so far as here material, is:
Appellant contends that the price paid represents a transaction wholly between the purchaser and the seller of the membership, wherein the club had no beneficial part or interest, and it is in no sense an initiation fee. It further...
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...Government which it now seeks to recover." No appeal was taken from this decision. The Seventh Circuit Court of Appeals in Wild Wing Lodge v. Blacklidge, 59 F. 2d 421, held the taxpayer to be the person paying initiation fees and dues, and not the club to which they were In the following ca......
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