Lincoln Nat'l Bank v. Commissioner
United States Board of Tax Appeals
A distribution to the principal shareholders of a corporation not strictly in proportion to their holdings, is held to be within the statutory definition of a dividend, and the fact that it was referred to as a gift in the corporate resolution authorizing it, together with oral testimony of other principal shareholders and directors that the amount distributed to one of them (the petitioner) was prompted by their gratitude for his service in preserving an estate of which…
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A distribution to the principal shareholders of a corporation not strictly in proportion to their holdings, is held to be within the statutory definition of a dividend, and the fact that it was referred to as a gift in the corporate resolution authorizing it, together with oral testimony of other principal shareholders and directors that the amount distributed to one of them (the petitioner) was prompted by their gratitude for his service in preserving an estate of which they were beneficiaries - a reason applicable to petitioner, but not the other distributees - is insufficient to support…
1Opinion of the Court
LINCOLN NATIONAL BANK, EXECUTOR OF THE ESTATE OF JOHN W. BRAWNER, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Lincoln Nat'l Bank v. Commissioner
Docket No. 50200.
United States Board of Tax Appeals
23 B.T.A. 1304; 1931 BTA LEXIS 1732;
August 24, 1931, Promulgated
A distribution to the principal shareholders of a corporation not strictly in proportion to their holdings, is held to be within the statutory definition of a dividend, and the fact that it was referred to as a gift in the corporate resolution authorizing it, together with oral testimony of other principal shareholders and…
2Cases cited1 opinion
- Lincoln Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1931