Edison Sec. Corp. v. Commissioner
United States Board of Tax Appeals
1. Distributions made by a corporation not in excess of earnings held under the circumstances to be ordinary and not liquidating dividends, no dissolution or winding up having at that time been decided upon or definitely planned, and notwithstanding the fact that liquidation had been suggested as a means of resolving a dispute between shareholders, and the fact that a later determination to liquidate and dissolve was carried out. 2. The statutory definition of reorganization…
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1. Distributions made by a corporation not in excess of earnings held under the circumstances to be ordinary and not liquidating dividends, no dissolution or winding up having at that time been decided upon or definitely planned, and notwithstanding the fact that liquidation had been suggested as a means of resolving a dispute between shareholders, and the fact that a later determination to liquidate and dissolve was carried out. 2. The statutory definition of reorganization is applicable to the events and occurrences therein described and does not embrace mere intends, plans or executory…
1Opinion of the Court
*489OPINION.
SteRNhagen :
1. In our opinion, the distributions of May 12, 1925, and May 27, 1925, made by Stevens & Wood, Inc., of Delaware, were dividends and not distributions in liquidation, both in fact and in the contemplation of the statute. At the time they were declared by the corporation, no dissolution of the corporation or winding up of the business had been decided upon or definitely planned. The mere fact that liquidation had been suggested as one method of resolving the dispute between shareholder interests does not stamp the distribution as one in liquidation. We have found no case…
2Cases cited5 opinions
- United States v. PhellisSupreme Court of the United States · 1921
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Simms v. CommissionerUnited States Board of Tax Appeals · 1933
- Green v. CommissionerUnited States Board of Tax Appeals · 1931
- Sarther Grocery Co. v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by17 opinions
- Law v. CommissionerUnited States Tax Court · 1985
- Koufman v. CommissionerUnited States Tax Court · 1977
- A. B. C. D. Lands, Inc. v. CommissionerUnited States Tax Court · 1964
- United States v. Galveston-Houston Electric Co.Court of Appeals for the First Circuit · 1936
- Ballwood Co. v. CommissionerUnited States Board of Tax Appeals · 1934
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