Thibaut & Walker Co. v. Commissioner
United States Board of Tax Appeals
UNDISTRIBUTED PROFITS TAX - CREDIT - CONTRACT RESTRICTING DIVIDENDS. - A contract whereby four sole stockholders-directors agreed to vote for a dividend policy requiring the addition of $15,000 of annual earnings to surplus and to which contract the corporation was a party, does not entitled the corporation to a credit under section 26(c)(1) of the Revenue Act of 1936.
1Opinion of the Court
*30OPINION.
Murdock:
The Commissioner determined a deficiency of $1,862.05 in the petitioner’s income tax for the calendar year 1936. The only issue for decision is whether the Commissioner erred in failing to allow a credit of $14,737.24 under section 26 (c) (1) of the Revenue Act of 1936 in computing the surtax on undistributed profits. The facts are presented by a stipulation which the Board adopts as its findings of fact.
The petitioner is a corporation, organized under the laws of New York. The ownership of its outstanding stock at all times material hereto was as follows:
Shares
Randall O.…
2Cases cited1 opinion
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
3Cited by5 opinions
- Supplee-Biddle Hardware Co. v. CommissionerCourt of Appeals for the Third Circuit · 1944
- Bishop & B. Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Hercules Gasoline Co. v. CommissionerSupreme Court of the United States · 1946
- Reclaimed Island Lands Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Thibaut & Walker Co. v. CommissionerUnited States Board of Tax Appeals · 1940