Murchison v. Commissioner
United States Board of Tax Appeals
DISTRIBUTIONS OF CORPORATE EARNINGS - INFORMAL DIVIDENDS. - Where petitioner was the record owner of all the stock of a corporation, except qualifying shares, and withdrew from the corporation substantially all of its net earnings during the taxable year, held, such withdrawals constituted distributions taxable as dividends, within the meaning of section 115, Revenue Act of 1928, notwithstanding no formal dividend was declared and the withdrawals were charged against…
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DISTRIBUTIONS OF CORPORATE EARNINGS - INFORMAL DIVIDENDS. - Where petitioner was the record owner of all the stock of a corporation, except qualifying shares, and withdrew from the corporation substantially all of its net earnings during the taxable year, held, such withdrawals constituted distributions taxable as dividends, within the meaning of section 115, Revenue Act of 1928, notwithstanding no formal dividend was declared and the withdrawals were charged against petitioner's open account on the corporation's books.
1Opinion of the Court
OPINION,
Trammell :
This proceeding is for the recletermination of a deficiency in income tax for the year 1929 in the amount of $24,344.93. The petitioner originally assigned 11 errors, upon the basis of which he alleged that the respondent determined the deficiency in controversy. However, at the hearing petitioner waived his assignments of error numbered 2, 4, 6, 7, 8, 10, and 11, and respondent conceded assignment numbered 5, relating to unidentified bank deposits included in gross income in the amount of $3,534.18.
This leaves for consideration here three issues joined by respondent’s…
2Cases cited2 opinions
- Smith v. MooreCourt of Appeals for the Ninth Circuit · 1912
- Thompson v. Railroad CommissionDistrict Court, E.D. Louisiana · 1912
3Cited by13 opinions
- Sachs v. CommissionerUnited States Tax Court · 1959
- Silverstein v. CommissionerUnited States Tax Court · 1961
- Campbell v. CommissionerUnited States Tax Court · 1961
- Atlanta Biltmore Hotel Corp. v. CommissionerUnited States Tax Court · 1963
- A. F. Lowes Lumber Co. v. CommissionerUnited States Tax Court · 1960
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