Dougherty v. Commissioner
United States Tax Court
Held, that a U.S. shareholder of a controlled foreign corporation must include in gross income his pro rata share of such corporation's increase in earnings invested in U.S. property for the taxable year to the extent of the corporation's current and accumulated earnings and profits, including earnings and profits accumulated prior to the effective date of subpart F, I.R.C. 1954. Held, further, there is no constitutional bar to such operation of the statute.
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Held, that a U.S. shareholder of a controlled foreign corporation must include in gross income his pro rata share of such corporation's increase in earnings invested in U.S. property for the taxable year to the extent of the corporation's current and accumulated earnings and profits, including earnings and profits accumulated prior to the effective date of subpart F, I.R.C. 1954. Held, further, there is no constitutional bar to such operation of the statute. Held, further, the taxable year of the controlled foreign corporation herein is determined to be the calendar year for purposes of…
1Opinion of the Court
Tannenwald, Judge:*
Respondent determined a deficiency of $412,241.87 in petitioners’ income tax for 1963. Petitioners contest the inclusion in their gross income for that year of any amount under section 951(a) (1) (B).1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioners are husband and wife whose legal residence was in Paoli, Ind., when they filed their petition in this case. They filed a joint Federal income tax return for the calendar year 1963 2 with the district director of internal…
2Cases cited51 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Corliss v. BowersSupreme Court of the United States · 1930
- Brushaber v. Union Pacific RailroadSupreme Court of the United States · 1916
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
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3Cited by60 opinions
- United States v. Leona M. Helmsley, Joseph v. Licari and Frank J. Turco, Leona M. HelmsleyCourt of Appeals for the Second Circuit · 1991
- Smith v. CommissionerUnited States Tax Court · 1982
- Taylor v. CommissionerUnited States Tax Court · 1977
- Tipps v. CommissionerUnited States Tax Court · 1980
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
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