Southern Pacific Co. v. Commissioner
United States Board of Tax Appeals
1. A person required by law to withhold the tax on interest payable to nonresident aliens on tax-free covenant bonds and expressly made liable for the tax, is not a taxpayer within section 274, Revenue Act of 1924, and is incompetent to bring a proceeding before the Board based on a notice of liability sent by the Commissioner prior to the enactment of the Revenue Act of 1926. 2. Section 283 (a), Revenue Act of 1926, which made notice of liability to the person liable for…
Read the full summary
1. A person required by law to withhold the tax on interest payable to nonresident aliens on tax-free covenant bonds and expressly made liable for the tax, is not a taxpayer within section 274, Revenue Act of 1924, and is incompetent to bring a proceeding before the Board based on a notice of liability sent by the Commissioner prior to the enactment of the Revenue Act of 1926. 2. Section 283 (a), Revenue Act of 1926, which made notice of liability to the person liable for the tax equally effective to establish jurisdiction as a notice of deficiency does not apply to notices given prior to its…
1Opinion of the Court
*991OPINION.
SteRNhagen :
Docket No. 7718 involves a deficiency of $91.16 in income tax on interest paid in 1921 by petitioner to holders of its tax-free covenant bonds. Docket Nos. 18333 and 18337 involve similar deficiencies of $382.58 and of $320.40, respectively, for 1923. The question raised is whether taxes payable by an obligor on tax-free covenant bonds held by nonresident aliens are, under certain stipulated circumstances, measured by the tax rate effective when the interest coupons mature, or the rate effective when they are paid.
The cases are submitted upon the following stipulation:(1)…
2Cases cited3 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Plant v. WalshDistrict Court, D. Connecticut · 1922
- United States v. GuinzburgCourt of Appeals for the Second Circuit · 1921
3Cited by5 opinions
- Houston Street Corp. v. CommissionerCourt of Appeals for the Fifth Circuit · 1936
- Central De Gas De Chihuahua, S.A. v. CommissionerUnited States Tax Court · 1994
- L. D. Caulk Co. v. United StatesDistrict Court, D. Delaware · 1953
- Central De Gas De Chihuahua, S.A. v. CommissionerUnited States Tax Court · 1994
- Southern Pacific Co. v. CommissionerUnited States Board of Tax Appeals · 1930