Cooney v. Commissioner
United States Tax Court
Petitioners were the sole stockholders, the principal officers, and two of the three directors of a corporation which, on January 2, 1947, authorized the payment to them of an incentive bonus based on a percentage of profits for the year. On December 2, 1947, before the exact amount of profits had been determined, the directors adopted a resolution authorizing the payment to petitioners of $ 10,000 each of their bonuses for that year.
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Petitioners were the sole stockholders, the principal officers, and two of the three directors of a corporation which, on January 2, 1947, authorized the payment to them of an incentive bonus based on a percentage of profits for the year. On December 2, 1947, before the exact amount of profits had been determined, the directors adopted a resolution authorizing the payment to petitioners of $ 10,000 each of their bonuses for that year. The corporation had ample funds available for such payments. In January 1948 it was determined that each petitioner was entitled to a bonus for 1947 of $…
1Opinion of the Court
OPINION.
LeMiRe, Judge:
Our above finding that petitioners constructively received $10,000 of their incentive bonus for 1947 in that year disposes of the only issue before us in these proceedings.
By the resolution of January 2, 1947, petitioners were entitled for that year, in addition to their salaries of $10,000 each, to a bonus equal to 10 per cent of the corporation’s net profits. The resolution of December 2, 1947, authorized the payment to petitioners in December of that year of $10,000 each in partial payment of the bonus due them under the January 2 resolution. That amount was based on…
2Cases cited4 opinions
- Acer Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1942
- Hyland v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
- Weil v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
- Eckhard v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1950
3Cited by22 opinions
- E. J. Benes & Co. v. CommissionerUnited States Tax Court · 1964
- Dial v. CommissionerUnited States Tax Court · 1955
- Platt Trailer Co. v. CommissionerUnited States Tax Court · 1955
- Young Door Co., Eastern Div. v. CommissionerUnited States Tax Court · 1963
- Hughes v. CommissionerUnited States Tax Court · 1964
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