Hillsboro Nat'l Bank v. Commissioner
United States Tax Court
Petitioner paid and properly deducted, pursuant to sec. 164(e), I.R.C. 1954, State ad valorem taxes imposed upon its individual shareholders on their interests as shareholders. Later, and in a different taxable year, these State taxes were refunded directly to petitioner's individual shareholders. Held, petitioner had a sufficient "recovery" of the refunded taxes so as to render it taxable on the refunds pursuant to the tax benefit rule.
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Petitioner paid and properly deducted, pursuant to sec. 164(e), I.R.C. 1954, State ad valorem taxes imposed upon its individual shareholders on their interests as shareholders. Later, and in a different taxable year, these State taxes were refunded directly to petitioner's individual shareholders. Held, petitioner had a sufficient "recovery" of the refunded taxes so as to render it taxable on the refunds pursuant to the tax benefit rule. Tennessee Carolina Transportation, Inc. v. Commissioner, 65 T.C. 440 (1975), affd. 582 F.2d 378 (6th Cir. 1978).
1Opinion of the Court
Hillsboro National Bank, Petitioner v. Commissioner of Internal Revenue, Respondent
Hillsboro Nat'l Bank v. Commissioner
Docket No. 8788-76
United States Tax Court
73 T.C. 61; 1979 U.S. Tax Ct. LEXIS 40;
October 11, 1979, Filed
Decision will be entered under Rule 155.
Petitioner paid and properly deducted, pursuant to sec. 164(e), I.R.C. 1954, State ad valorem taxes imposed upon its individual shareholders on their interests as shareholders. Later, and in a different taxable year, these State taxes were refunded directly to petitioner's individual shareholders. Held, petitioner had a sufficient…
2Cases cited19 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Lehnhausen v. Lake Shore Auto Parts Co.Supreme Court of the United States · 1973
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Putoma Corp., Successor by Merger of Pro-Mac Company, Petitioners- Cross-Appellants v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1979
- Alice Phelan Sullivan Corporation, a California Corporation v. The United StatesUnited States Court of Claims · 1967
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