Hillsboro Nat'l Bank v. Commissioner
United States Tax Court
Petitioner paid and properly deducted, pursuant to sec. 164(e), I.R.C. 1954, State ad valorem taxes imposed upon its individual shareholders on their interests as shareholders. Later, and in a different taxable year, these State taxes were refunded directly to petitioner's individual shareholders. Held, petitioner had a sufficient "recovery" of the refunded taxes so as to render it taxable on the refunds pursuant to the tax benefit rule.
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Petitioner paid and properly deducted, pursuant to sec. 164(e), I.R.C. 1954, State ad valorem taxes imposed upon its individual shareholders on their interests as shareholders. Later, and in a different taxable year, these State taxes were refunded directly to petitioner's individual shareholders. Held, petitioner had a sufficient "recovery" of the refunded taxes so as to render it taxable on the refunds pursuant to the tax benefit rule. Tennessee Carolina Transportation, Inc. v. Commissioner, 65 T.C. 440 (1975), affd. 582 F.2d 378 (6th Cir. 1978).
1Opinion of the Court
OPINION
Sterrett, Judge:*
Respondent determined a deficiency in petitioner’s income taxes paid for its taxable year ended December 31,1973, in the amount of $13,143.1 After concessions, the only issue left for our decision is whether or not petitioner had such a recovery of previously paid and deducted State taxes as to allow respondent to successfully invoke the tax benefit rule.
This case was submitted for decision under Rule 122, Tax Court Rules of Practice and Procedure. All the facts were, therefore, stipulated and are so found. The stipulation of facts and exhibits attached thereto are…
2Cases cited18 opinions
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- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Putoma Corp., Successor by Merger of Pro-Mac Company, Petitioners- Cross-Appellants v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1979
- Alice Phelan Sullivan Corporation, a California Corporation v. The United StatesUnited States Court of Claims · 1967
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3Cited by5 opinions
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- Woods v. CommissionerUnited States Tax Court · 1989