Kling v. Commissioner
United States Board of Tax Appeals
The amount of the normal tax paid by a debtor corporation on bonds containing a tax-free covenant clause is not a part of the taxable income required to be included in the bondholder's income-tax return under the provisions of the Revenue Act of 1918.
1Opinion of the Court
OPINION.
Smith:
This appeal presents two questions for determination: (1) Whether the Board has jurisdiction of an appeal in which the taxpayer'does not take exception to the adjustments in the taxpayer’s income-tax return made by the Commissioner but sets up as an offset thereto an alleged error in the original return not corrected by the Commissioner in the making of his adjustments; and (2) whether a taxpayer is required to include in the gross income shown in a tax *1049return the amount of the normal tax of 2 per cent paid by a debtor corporation in respect of interest paid to the taxpayer by…
2Cases cited3 opinions
- Gould v. GouldSupreme Court of the United States · 1917
- Massey v. LedererDistrict Court, E.D. Pennsylvania · 1921
- Pitney v. DuffyDistrict Court, D. New Jersey · 1923
3Cited by1 opinion
- Kling v. CommissionerUnited States Board of Tax Appeals · 1925