Bernard E. Niedermeyer and Tessie S. Niedermeyer v. Commissioner of Internal Revenue

OPINION

Before SMITH, * and HUFSTEDLER, Circuit Judges, and WOLLENBERG, ** District Judge. PER CURIAM:

The taxpayers, husband and wife, owned 22.58 percent of the common stock and 125 shares of the preferred stock of American Timber & Trading Co., Inc. (“AT&T”), a closely held corporation. Two of the taxpayers’ sons owned 67.91 percent of the common stock of AT&T. Three other sons of the taxpayers owned 67 percent of the common stock of Lents Industries, Inc. (“Lents”), another closely held corporation. The taxpayers owned no shares in Lents. The taxpayers sold all of their AT&T common stock to…