Sachs v. Commissioner
United States Tax Court
In 1951 the petitioner, president of a corporation, pleaded guilty to an indictment charging him with violation of section 145(b), title 26 U.S.C., in willfully attempting to defeat and evade a large part of income tax due by the corporation, was convicted, and a fine of $ 40,000 and costs was imposed upon him.
Read the full summary
In 1951 the petitioner, president of a corporation, pleaded guilty to an indictment charging him with violation of section 145(b), title 26 U.S.C., in willfully attempting to defeat and evade a large part of income tax due by the corporation, was convicted, and a fine of $ 40,000 and costs was imposed upon him. The corporation was not a party to the criminal proceeding but paid the fine and costs for the petitioner in installments in 1951, 1952, 1953, and 1954. Held, that the amounts so paid by the corporation in each year constituted a taxable dividend to the petitioner. Held, further, that…
1Opinion of the Court
OPINION.
Atkins, Judge:
The respondent determined deficiencies in income tax as follows:
1951-$2, 512.25
1952- 4,328.77
1953- 5, 862. 73
1954- 5,275.24
1955- 3,672.70
The principal issue is whether amounts paid by a corporation in discharge of a fine imposed upon the petitioner, who was a stockholder and the president of the corporation, for violation of section 145(b), title 26 of the United States Code, constitute taxable income of the petitioner. The only other issue relates to whether a consent, Treasury Form 872, was effective to extend the statute of limitations for the taxable year 1951. A…
2Cases cited20 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. SmithSupreme Court of the United States · 1945
15 more not listed; retrieve them via the Exa API.
3Cited by92 opinions
- Irving Sachs v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1960
- Coors v. CommissionerUnited States Tax Court · 1973
- Palmer v. CommissionerUnited States Tax Court · 1974
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- O'Malley v. CommissionerUnited States Tax Court · 1988
87 more not listed; retrieve them via the Exa API.