Wiegand v. Commissioner
United States Tax Court
1. A corporation had only class A shares and class B shares outstanding. In June 1940 it distributed a 50 per cent dividend in class A shares to holders of that class and a 50 per cent dividend in class B shares to holders of that class.
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1. A corporation had only class A shares and class B shares outstanding. In June 1940 it distributed a 50 per cent dividend in class A shares to holders of that class and a 50 per cent dividend in class B shares to holders of that class. Held, that, as to holders of shares of each class, there was a change in proportionate interest and the distribution on each class of stock constituted taxable income. 2. The fair market value of class A shares and class B shares on the date of distribution determined. 3. Held, as to certain of the petitioners, that the period of limitations provided in…
1Opinion of the Court
OPINION.
TiirneR, Judge-.
The first question for determination is whether the distributions made by the corporation on June 20, 1940, of 2,000 shares of its class A stock to holders of that class of stock and 12,000 shares of its class B stock to holders of that class of stock constituted distributions taxable as dividends under the Internal Bevenue Code.1
While section 115 (f) of the code excludes from the definition of “dividend” distributions made by corporations in their stock where such distributions do not constitute income to the stockholders within the meaning of the Sixteenth Amendment,…
2Cases cited7 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. GowranSupreme Court of the United States · 1937
- Koshland v. HelveringSupreme Court of the United States · 1936
- Helvering v. PfeifferSupreme Court of the United States · 1937
- Hale v. CommissionerUnited States Tax Court · 1942
2 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Lawrence v. CommissionerUnited States Tax Court · 1957
- Sutor v. CommissionerUnited States Tax Court · 1951
- Houston v. CommissionerUnited States Tax Court · 1962
- Wiegand v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1952
- Messer v. CommissionerUnited States Tax Court · 1953
9 more not listed; retrieve them via the Exa API.