Peoples Bank v. Commissioner
United States Board of Tax Appeals
Petitioner, a banking institution, closed its doors in May 1932 and in order to make possible its reopening its depositors relinquished and canceled one-half their deposits. Petitioner's stockholders agreed by separate contract with these depositors that these relinquished deposits would be paid before the stockholders claimed any dividends. The bank reopened in December 1932. In 1936 petitioner's stockholders paid $15,897.64 pro rata on the canceled deposits.
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Petitioner, a banking institution, closed its doors in May 1932 and in order to make possible its reopening its depositors relinquished and canceled one-half their deposits. Petitioner's stockholders agreed by separate contract with these depositors that these relinquished deposits would be paid before the stockholders claimed any dividends. The bank reopened in December 1932. In 1936 petitioner's stockholders paid $15,897.64 pro rata on the canceled deposits. Held, petitioner is not given immunity from collection of United States taxes by section 3798 of the Internal Revenue Code, since no…
1Opinion of the Court
*591OPINION.
Artjndell :
The petitioner contests the whole of the deficiencies asserted here on the basis of section 3798 of the Internal Revenue Code, which is set out in the margin.1 The portion of the section claimed to be applicable is to be found in subsection (b) and provides that when depositors of a bank have released it from a portion of its deposit liability, accepting in lieu thereof a lien on its future earnings, no tax shall be assessed or collected by the United States which shall diminish the assets available and necessary to the full payment of such claims. The statute invoked,…
2Cases cited6 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
- Walker v. BrownSupreme Court of the United States · 1897
- Ingersoll v. CoramSupreme Court of the United States · 1908
- United States v. Butterworth Judson Corp.Supreme Court of the United States · 1925
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Farmers & Merchants Bank v. Commissioner of Int. Rev.Court of Appeals for the Eighth Circuit · 1949
- Farmers & Merchants Bank v. CommissionerUnited States Tax Court · 1948
- Farmers State Bank v. CommissionerUnited States Tax Court · 1945
- Peoples Bank v. CommissionerUnited States Board of Tax Appeals · 1941