Mathis v. Commissioner
United States Tax Court
Held, an initial downpayment and subsequent installment payments made by a corporation in connection with the acquisition of its preferred stock were payments on the overall purchase price of the stock under a valid redemption contract, not dividend distributions; they resulted in the complete termination of the shareholder's interest in the distributing corporation, thus qualifying the transaction for capital gains treatment under sec. 302(a), I.R.C. 1954.
1Opinion of the Court
Hoyt, Judge:
Respondent determined deficiencies in petitioners’ income taxes and additions to the tax under section 6651 of the Internal Revenue Code of 1954 as follows:
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These cases were consolidated upon motions by the petitioners and will be decided together. The questions presented are whether the petitioners received dividend income on certain shares of preferred stock of the Krispy Kreme Doughnut Corp., and if so, whether the failure of the petitioners to file Federal income tax returns reporting such distributions was due to reasonable cause and not to willful neglect.
FINDING…
2Cases cited3 opinions
- Danielson v. CommissionerUnited States Tax Court · 1965
- Gilmore v. CommissionerUnited States Tax Court · 1956
- Warren Nat. Bank v. CommissionerCourt of Appeals for the Third Circuit · 1932
3Cited by19 opinions
- Herbert A. Dunn and Georgia E. Dunn v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Niedermeyer v. CommissionerUnited States Tax Court · 1974
- Steffen v. CommissionerUnited States Tax Court · 1978
- Cummins Diesel Sales Corp. v. United StatesDistrict Court, S.D. Indiana · 1971
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