Clark v. Commissioner
United States Tax Court
BMC was an electing small business corporation under subch. S of the 1954 Code during its fiscal year ending Mar. 31, 1966. Its election terminated as of Apr. 1, 1966. On Mar. 31, 1966, the corporation made a distribution to its stockholders in the amount of $ 50,212, purportedly in respect of theretofore undistributed taxable income allocable to its fiscal year ending Mar. 31, 1965. On May 31, 1966, BMC issued its non-interest-bearing, negotiable demand notes to its…
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BMC was an electing small business corporation under subch. S of the 1954 Code during its fiscal year ending Mar. 31, 1966. Its election terminated as of Apr. 1, 1966. On Mar. 31, 1966, the corporation made a distribution to its stockholders in the amount of $ 50,212, purportedly in respect of theretofore undistributed taxable income allocable to its fiscal year ending Mar. 31, 1965. On May 31, 1966, BMC issued its non-interest-bearing, negotiable demand notes to its stockholders in the aggregate amount of $ 52,472.07, of which $ 48,683 purportedly represented its undistributed taxable income…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in income tax as follows:
Docket No. Year ending Deficiency
Randall N. and Jeannette]S-Clark... 6298-69TDec. 31,1966!-H ,$6,494.08
Bryan M. and Charlotte S. Clark. 6299-69 Jan.^31,1967 '» ¡.29,503.19
The only issue remaining for decision is whether a distribution to the shareholders of an electing small business corporation of its negotiable demand notes within 2% months after the close of its taxable year constituted a tax-free distribution of the corporation’s undistributed taxable income under section 1375(f), I.R.C. 1954. The facts…
2Cases cited16 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Brewster v. GageSupreme Court of the United States · 1930
- Sanford v. CommissionerUnited States Tax Court · 1968
- William F. Sanford v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1969
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3Cited by22 opinions
- Fountain v. CommissionerUnited States Tax Court · 1973
- Dittler Bros., Inc. v. CommissionerUnited States Tax Court · 1979
- Don E. Williams Co. v. CommissionerUnited States Tax Court · 1974
- Romano v. WeissMassachusetts Appeals Court · 1988
- Seiners Asso. v. CommissionerUnited States Tax Court · 1972
17 more not listed; retrieve them via the Exa API.