McRitchie v. Commissioner
United States Tax Court
As a result of a controversy in which title to shares of stock standing in the name of Lee McRitchie was contested by another, the corporation withheld dividends declared in 1948. In 1949 it instituted an interpleader action and paid into the registry of the court the 1948 and 1949 dividends. In 1950 it similarly deposited the dividends declared during that year.
Read the full summary
As a result of a controversy in which title to shares of stock standing in the name of Lee McRitchie was contested by another, the corporation withheld dividends declared in 1948. In 1949 it instituted an interpleader action and paid into the registry of the court the 1948 and 1949 dividends. In 1950 it similarly deposited the dividends declared during that year. The litigation finally terminated in McRitchie's favor in 1951 when the funds in the hands of the court were released to him. Held, the dividends were income to petitioners in 1951, and were not chargeable to the corporation in 1948…
1Opinion of the Court
opinion.
Raum, Judge:
The sole question is whether petitioners must account in their 1951 income tax return for dividends declared in 1948, 1949, and 1950 on stock owned by Lee McRitchie and paid into the registry of a Federal District Court in 1949 and 1950 by the corporation in connection with litigation relating to title to the stock. The litigation terminated in favor of Lee McRitchie in 1951 and the fund was then promptly released to him. All of the facts have been stipulated, and an abbreviated statement will be sufficient to bring the problem into focus.
Lee McRitchie and his wife filed…
2Cases cited19 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Hart v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1932
- Petit v. CommissionerUnited States Tax Court · 1947
- Commissioner of Internal Revenue v. OwensCourt of Appeals for the Tenth Circuit · 1935
- E. T. Slider, Inc. v. CommissionerUnited States Tax Court · 1945
14 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Western Products Co. v. CommissionerUnited States Tax Court · 1957
- United States v. De BonchampsCourt of Appeals for the Ninth Circuit · 1960
- Street v. CommissionerUnited States Tax Court · 1957
- MacPherson v. United StatesDistrict Court, C.D. California · 1985
- Mel Dar Corp. v. CommissionerUnited States Tax Court · 1960
6 more not listed; retrieve them via the Exa API.