Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 56-21

1956-1 C.B. 208

Sec. 521

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Rev. Rul. 56-21

A farmers cooperative marketing and purchasing association otherwise exempt from taxation under section 521 of the Internal Revenue Code of 1954 will not be denied such exemption if a substantial part of its voting capital stock is held in trust by its membership committee for members of the association who are the beneficial owners thereof. Capital stock so held qualifies as stock `owned by producers who market their products or purchase their supplies and equipment through the association' within the intendment of section 521 of the 1954 Code.