James and Martha Kuper and Charles and Kathleen Kuper, Cross-Appellees v. Commissioner of Internal Revenue, Cross-Appellant

GOLDBERG, Circuit Judge:

Once again we confront taxpayers who have taken a circuitous route to reach an end more easily accessible by a straightforward path. Looking to substance rather than form, we decide that the instant transactions must be taxed for what realistically they are — an exchange of stock and a dividend. The Tax Court heard the present controversy, 61 T.C. 624 (1974), and found a taxable exchange of stock — a determination which we affirm. That same court, however, failed to denominate the cash transfer of corporate funds a dividend, and it is this latter decision which, for…