Dillard Paper Company v. Commissioner of Internal Revenue

At issue on this appeal is the propriety of a long-term capital loss of $12,918.87 claimed by the taxpayer, Dillard Paper Company, on its federal income tax return for 1958. This loss resulted from the transfer by Dillard of certain securities it owned to the fiduciary of its employees’ profit-sharing plan in partial satisfaction of an obligatory contribution to the plan based upon 1957 operations. The Commissioner disallowed the loss, relying upon §§ 267(a) (1) and 267(b) (4) of the Internal Revenue Code of 1954, 1 and assessed an income tax deficiency of $1,-735.65 for the taxpayer for…