Darrow v. Commissioner
United States Board of Tax Appeals
The term "dividends" as defined in section 201 of the Revenue Act of 1921, includes distributions in liquidation of a corporation to the extent of the earnings or profits accumulated since February 28, 1913, contained therein, and to the extent of those earnings such distributions are taxable as dividends, subject to the surtax and exempt from the normal tax.
1Opinion of the Court
*277OPINION.
Van Fossan:
The facts are stipulated. The issue raised by the pleadings is whether or not a gain derived from a distribution in liquidation is taxable income. In his brief, however, petitioner concedes that such a gain is taxable income, but he contends that the distribution is a dividend within the meaning of section 201 of the Eevenue Act of 1921 and as such is exempt from the normal tax under section 216(a) (1) of said Act.
Distributions in liquidation made by a corporation to its stockholders have been repeatedly held by this Board to result in taxable income to the stockholders,…
2Cases cited5 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Lynch v. HornbySupreme Court of the United States · 1918
- Lynch v. TurrishSupreme Court of the United States · 1918
- Edwards v. DouglasSupreme Court of the United States · 1925
- Johnstone v. Stondall Land & Investment Co.Court of Appeals for the Eighth Circuit · 1924
3Cited by8 opinions
- Berliner v. District of ColumbiaCourt of Appeals for the D.C. Circuit · 1958
- Woodard v. CommissionerUnited States Board of Tax Appeals · 1934
- Walker v. CommissionerUnited States Board of Tax Appeals · 1933
- Darrow v. CommissionerUnited States Board of Tax Appeals · 1927
- Gates v. CommissionerUnited States Board of Tax Appeals · 1928
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