Cohen v. Commissioner
United States Board of Tax Appeals
1. It is not the duty of the Board, even by agreement of the parties, to determine abstract questions on assumed facts. There must be a real controversy, the facts of which must be established either by a bona fide stipulation or by evidence. 2. Under the Revenue Act of 1921 a liquidating distribution is taxable as a dividend and not as a capital gain. 3. To tax the gain as dividend is clearly not unconstitutional; and, assuming that the statute may, under certain…
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1. It is not the duty of the Board, even by agreement of the parties, to determine abstract questions on assumed facts. There must be a real controversy, the facts of which must be established either by a bona fide stipulation or by evidence. 2. Under the Revenue Act of 1921 a liquidating distribution is taxable as a dividend and not as a capital gain. 3. To tax the gain as dividend is clearly not unconstitutional; and, assuming that the statute may, under certain conditions, be applied so as to tax a real loss as a gain, a taxpayer may not urge its invalidity on that ground in the absence of…
1Opinion of the Court
OPINION.
SteRnhagen:
For 1922 respondent determined deficiencies in petitioners5 income taxes of $2,958.01 as to Emanuel Cohen and $28,344.22 as to Frank Cohen. Three issues were pleaded, but at the hearing the third was withdrawn by petitioners and the second was conceded by respondent, thus leaving only the first to be decided. That issue is presented by respondent’s determination that an amount of gain received by petitioners’ partnership in the distribution in liquidation of the assets of a corporation of which the partnership owned all the shares was taxable to the partners as a dividend…
2Cases cited5 opinions
- Dahnke-Walker Milling Co. v. BondurantSupreme Court of the United States · 1921
- Rindge Co. v. County of Los AngelesSupreme Court of the United States · 1923
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Castillo v. McConnicoSupreme Court of the United States · 1898
- Aikins v. KingsburySupreme Court of the United States · 1918
3Cited by11 opinions
- Roderick v. CommissionerUnited States Tax Court · 1971
- Madden v. CommissionerUnited States Tax Court · 1969
- Cohen v. CommissionerUnited States Board of Tax Appeals · 1930
- Danzinger v. CommissionerUnited States Tax Court · 1982
- Gladstone Foundation v. CommissionerUnited States Tax Court · 1981
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