John E. McCullough and Esther D. McCullough v. The United States

COLLINS, Judge.

This is an action for the refund of Federal income tax. Plaintiffs were the owners of shares of common stock in the St. Louis-San Francisco Railway Company (hereinafter referred to as “Frisco”). During the years in question, 1957 and 1958, plaintiffs received from the Frisco distributions of $187.50 and $25, respectively. The distributions were treated in plaintiffs’ (joint) Federal income tax returns as dividend income. The basis for this action is plaintiffs’ assertion now that, in part, the distributions did not represent dividend income, but were, in part, a return of…