American Light & Traction Co. v. Commissioner
United States Tax Court
1. Dividends declared in December 1936 to stockholders of record as of dates during that month, but payable in 1937, are income to stockholder petitioner in the latter year, even though it is on an accrual basis. Tar Products Corporation v. Commissioner, 130 Fed.
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1. Dividends declared in December 1936 to stockholders of record as of dates during that month, but payable in 1937, are income to stockholder petitioner in the latter year, even though it is on an accrual basis. Tar Products Corporation v. Commissioner, 130 Fed. (2d) 866, followed. 2. Since the Wisconsin Privilege Dividend Tax Law, ch. 505, Laws of 1935, as amended, imposes the burden of that tax upon the stockholder, the stockholder may deduct the same under section 23 (c) of the Revenue Acts of 1934 and 1936. Wisconsin Gas & Electric Co. v. United States, 322 U.S. 526.
1Opinion of the Court
OPINION.
Leech, Judge:
The Commissioner determined a deficiency in income tax of $37,989.97 for the year 1936. By an amendment to his answer he now seeks to have the deficiency increased to $42,355.41, due to the disallowance of an allegedly erroneous deduction for Wisconsin privilege dividend tax.
The issues are (1) whether the petitioner, on an accrual basis, is taxable in 1936 on dividends declared in 1936 and payable in 1937 to stockholders of record on dates falling in 1936, and (2) whether petitioner properly deducted the Wisconsin privilege dividend tax, under section 23 (c) of the…
2Cases cited3 opinions
- Wisconsin v. J. C. Penney Co.Supreme Court of the United States · 1941
- Wisconsin Gas & Electric Co. v. United StatesSupreme Court of the United States · 1944
- Montreal Mining Co. v. CommissionerUnited States Tax Court · 1943
3Cited by11 opinions
- Estate of Putnam v. CommissionerSupreme Court of the United States · 1945
- Frelbro Corp. v. CommissionerUnited States Tax Court · 1961
- Beneficial Corp. v. CommissionerUnited States Tax Court · 1952
- Cox v. CommissionerUnited States Tax Court · 1982
- American Light & Traction Co. v. CommissionerUnited States Tax Court · 1944
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