Sebago Lumber Co. v. Commissioner
United States Tax Court
Petitioner was incorporated in 1913. During the taxable years 1947 through 1951 stock was outstanding, bylaws were in effect, directors held office, meetings were held and minutes kept, corporate records were maintained, and corporate income tax returns were filed. Robert R. Jordan owned 98 of its 100 shares of stock. Two shares were in the names of its other directors. Dividends were never formally declared, but Jordan distributed all petitioner's income to himself.
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Petitioner was incorporated in 1913. During the taxable years 1947 through 1951 stock was outstanding, bylaws were in effect, directors held office, meetings were held and minutes kept, corporate records were maintained, and corporate income tax returns were filed. Robert R. Jordan owned 98 of its 100 shares of stock. Two shares were in the names of its other directors. Dividends were never formally declared, but Jordan distributed all petitioner's income to himself. Petitioner's income from 1947 through 1951 consisted solely of dividends, interest, rents, and capital gains. Jordan filed an…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The petitioner’s first contention is that although it is a corporation in form, in truth and in fact it is Bobert B. Jordan, an individual, and therefore not liable for any corporation income taxes. This position is untenable. The petitioner has operated as a corporation at substantially all times. It was formally incorporated, stock was issued, bylaws were adopted, directors were elected, minutes of meetings were kept, corporate records were maintained, and corporation income tax returns were filed. A close relationship between a corporation and its sole stockholder…
2Cases cited3 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Coshocton Sec. Co. v. CommissionerUnited States Tax Court · 1956
3Cited by12 opinions
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- Rink v. CommissionerUnited States Tax Court · 1969
- Nutt v. CommissionerUnited States Tax Court · 1962
- Kurt Frings Agency, Inc. v. CommissionerUnited States Tax Court · 1964
- Proctor v. CommissionerUnited States Tax Court · 1981
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