Boulware v. United States

Sections 301 and 316(a) of the Internal Revenue Code set the conditions for treating certain corporate distributions as returns of capital, nontaxable to the recipient. 26 U. S. C. §§ 301, 316(a) (2000 ed. and Supp. V). The question here is whether a distributee accused of criminal tax evasion may-claim return-of-capital treatment without producing evidence that either he or the corporation intended a capital return when the distribution occurred. We hold that no such showing is required.

I

“[T]he capstone of [the] system of sanctions ... calculated to induce ... fulfillment of every duty under…