Johnson v. United States

MEMORANDUM

SWINFORD, District Judge.

Joseph E. Johnson, III is a shareholder in the Pine Branch Coal Company, a “small business corporation” validly constituted under Subchapter S of the Internal Revenue Code, 26 U.S.C. (hereinafter: IRC). This action commenced pursuant to 28 U.S.C. 1346(a)(1) seeks a refund of the plaintiffs’ alleged 1963 income tax overpayment 1 attributable to the defendant’s erroneous classification of certain undistributed corporate funds as a taxable “dividend.” The facts have been stipulated and the record is before the court for decision.

Although a resolution of the…