United States v. Vortex Cup Co.

SPARKS, Circuit Judge.

This appeal presents the question of the taxability under section 800 et seq. (title 8), Schedule A (3) of the Revenue Act of 1926,1 of the transfers of stock which took place during the course of the reorganization of an Illinois corporation under the laws of Delaware. Taxes were duly paid on the issuance of the stock in the new Delaware corporation under the provisions of Schedule A (2) of the statute, and as to those taxes no question arises. In addition, however, the government assessed, and the taxpayer paid, under protest, a *926tax on the transfer of the new stock…