Alworth v. Commissioner
United States Board of Tax Appeals
The petitioner was the stockholder of a corporation which annually distributed amounts in excess of its earnings and profits. It kept its books and reported its income by the cash receipts and disbursements method. Held, that in determining the amount of the distribution in the taxable year which constituted dividends under section 115(a) of the Revenue Act of 1936, income and excess profits taxes for that year accrued but umpaid must be taken into account.
1Opinion of the Court
*1046OPINION.
TURNER:
In so far as material to the conclusion we here reach, there is no dispute between the parties as to the facts. Due to its practice of distributing to its stockholders in each year an amount admittedly in excess of its earnings and profits, the Royal Mineral Association began the year and closed the year with no accumulated earnings or profits. In other words, it distributed the entire amount available for distribution as dividends,- and a determination of the amount so available is a determination of the amount of dividends distributed. In arriving at the amount available in…
2Cases cited2 opinions
- Edwards v. DouglasSupreme Court of the United States · 1925
- Mobile & Ohio Railroad v. TennesseeSupreme Court of the United States · 1894
3Cited by12 opinions
- Helvering v. Alworth TrustCourt of Appeals for the Eighth Circuit · 1943
- Mazzocchi Bus Co. v. CommissionerCourt of Appeals for the Third Circuit · 1994
- Mazzocchi Bus Co. v. CommissionerUnited States Tax Court · 1993
- Webb v. CommissionerUnited States Tax Court · 1977
- MANNING v. COMMISSIONERUnited States Tax Court · 1993
7 more not listed; retrieve them via the Exa API.