Federbush v. Commissioner
United States Tax Court
1. Corporate petitioner's income tax returns held to have been false and fraudulent with intent to evade tax. 2. Beginning in September of 1942 and continuing through 1946, five brothers, who were the officers of petitioner corporation and who owned five-sixths of its outstanding stock, took possession of certain checks received by the corporation in payment for merchandise shipped to its customers and in payment of rent owed to it.
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1. Corporate petitioner's income tax returns held to have been false and fraudulent with intent to evade tax. 2. Beginning in September of 1942 and continuing through 1946, five brothers, who were the officers of petitioner corporation and who owned five-sixths of its outstanding stock, took possession of certain checks received by the corporation in payment for merchandise shipped to its customers and in payment of rent owed to it. After cashing the checks, they divided the proceeds. They also paid corporate funds to themselves in the guise of business expenses. Held, that petitioner…
1Opinion of the Court
OPINION.
TueneR, Judge:
Except for Docket No. 69574, each of these cases involves the tax consequences of the distribution or division of funds of the Federbush Company by and between, its officer-stockholders without formal action as directors of the company and without recording the distributions on the corporate books.
With respect to the Federbush Company, the assessment of the deficiencies and the additions to tax for fraud is barred by the statute of limitations unless the returns were “fraudulent * * '* with intent to evade tax,” within the meaning of section 276(a) of the Internal…
2Cases cited33 opinions
- Spies v. United StatesSupreme Court of the United States · 1943
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Rutkin v. United StatesSupreme Court of the United States · 1952
- Rogers v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1940
- Howell v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
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3Cited by120 opinions
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- Brown v. CommissionerUnited States Tax Court · 1968
- Asphalt Industries, Inc. v. CommissionerUnited States Tax Court · 1966
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