Sheaffer v. Commissioner
United States Tax Court
In 1954 petitioner Virginia D. Sheaffer entered into a trust agreement with a bank as trustee wherein petitioner created a separate trust for each of her four children and transferred to the trustee 70,000 shares of the common stock of W. A. Sheaffer Pen Company. The trustee agreed to assume and pay all gift taxes which shall or may be assessed or become due from anyone by reason of the transfer.
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In 1954 petitioner Virginia D. Sheaffer entered into a trust agreement with a bank as trustee wherein petitioner created a separate trust for each of her four children and transferred to the trustee 70,000 shares of the common stock of W. A. Sheaffer Pen Company. The trustee agreed to assume and pay all gift taxes which shall or may be assessed or become due from anyone by reason of the transfer. In 1954 and 1955 the Pen Company paid the trustee as dividends on the 70,000 shares the amounts of $ 140,000 and $ 115,500, respectively. On March 14, 1955, petitioners each filed a United States…
1Opinion of the Court
OPINION.
ÁRUndell, Judge:
Eespondent determined deficiencies in income tax for the calendar years 1954 and 1955 in the amounts of $125,910.80 and $84,683.81, respectively.
The only issue remaining is whether the respondent erred in determining that in the calendar years 1954 and 1955 petitioners realized income in the amounts of $140,000 and $115,500, respectively, “on the theory that such income, which was earned by the trusts created by petitioner Virginia D. Sheaffer under a Trust Agreement dated February 2,1954, was applied by the trustee thereof as partial payment of an alleged legal…
2Cases cited9 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Fletcher Trust Co. v. COMMISSIONER OF INT. REVENUECourt of Appeals for the Seventh Circuit · 1944
- Fletcher Trust Co. v. CommissionerUnited States Tax Court · 1943
- Staley v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1943
- W. Sam Edwards, Administrator of the Estate of Marion H. Allen, Former Collector of Internal Revenue v. Mrs. Dorothy Dannenberg GreenwaldCourt of Appeals for the Fifth Circuit · 1954
4 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Furman v. CommissionerUnited States Tax Court · 1966
- Turner v. CommissionerUnited States Tax Court · 1968
- Lazarus v. CommissionerUnited States Tax Court · 1972
- Miller v. CommissionerUnited States Tax Court · 1969
- Hirst v. CommissionerUnited States Tax Court · 1974
22 more not listed; retrieve them via the Exa API.