Monte Glove Co. v. Commissioner
United States Board of Tax Appeals
1. All the stockholders of a corporation by petition addressed to its board of directors authorized and consented to a dividend distribution not in proportion to stockholdings, but in proportions which would result in payments to two stockholders who gave all their time to the business of the corporation in amounts larger than they would have received if the distribution had been pro rata.
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1. All the stockholders of a corporation by petition addressed to its board of directors authorized and consented to a dividend distribution not in proportion to stockholdings, but in proportions which would result in payments to two stockholders who gave all their time to the business of the corporation in amounts larger than they would have received if the distribution had been pro rata. Held, such dividend distribution was preferential within the meaning of section 27(g), Act of 1936. 2. Held, on the facts, that compensation paid to one of petitioner's officers was unreasonable and…
1Opinion of the Court
MONTE GLOVE COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Monte Glove Co. v. Commissioner
Docket No. 104559.
United States Board of Tax Appeals
44 B.T.A. 539; 1941 BTA LEXIS 1312;
May 21, 1941, Promulgated
1. All the stockholders of a corporation by petition addressed to its board of directors authorized and consented to a dividend distribution not in proportion to stockholdings, but in proportions which would result in payments to two stockholders who gave all their time to the business of the corporation in amounts larger than they would have received if the distribution…
2Cases cited1 opinion
- Monte Glove Co. v. CommissionerUnited States Board of Tax Appeals · 1941