William E. Cherry v. Reagan Farr, Commissioner of The Department of Revenue For the State of Tennessee

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE January 21, 2014 Session WILLIAM E. CHERRY ET AL. v. REAGAN FARR, COMMISSIONER OF THE DEPARTMENT OF REVENUE FOR THE STATE OF TENNESSEE Appeal from the Chancery Court for Williamson County No. 34048 Robbie T. Beal, Judge No. M2013-01823-COA-R3-CV - Filed April 15, 2014 Plaintiffs filed suit to recover income taxes paid under protest pursuant to Tennessee’s Hall Income Tax. At issue is a “Special Dividend” Plaintiffs received that was classified by the corporation for income tax purposes as a return of “paid-in capital.” Plaintiffs contend the…