Stocker v. Commissioner
United States Board of Tax Appeals
1. Amounts distributed in 1919 in liquidation of corporations out of earnings and profits accumulated since February 28, 1913, are payments in exchange for its stock subject to both normal and surtax under section 201(c) of the Revenue Act of 1918. 2. An erroneous construction of the laws by the Treasury Department does not preclude nor estop the Government from collecting a tax which is legally due.
1Opinion of the Court
*1350OPINION.
GREEN:
The petitioners were the holders of the stock of three corporations. They formed three partnerships, each of which was to take over the assets and business of one of the corporations. Each of the petitioners was to have an interest in the partnerships proportionate to his stockholding in the corporation. The assets were transferred and the corporations dissolved. The details of the transfer were not furnished us. The respondent treated the transaction as a distribution in liquidation and accordingly applied that portion of section 201(c) of the Revenue Act of 1918 which reads as…
2Cited by6 opinions
- Mente & Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Snyder v. CommissionerUnited States Tax Court · 1975
- Vonnegut Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Stocker v. CommissionerUnited States Board of Tax Appeals · 1928
- Vonnegut Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1933
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