Annis Furs, Inc. v. Commissioner
United States Tax Court
The receipt in 1939 by nonresident alien shareholders of a corporation's 6 percent debentures in a nontaxable (section 112 (b) (3)) recapitalization (section 112 (g) (1) (E)) in exchange for their 6 1/2 percent preferred shares held not essentially equivalent to a dividend taxable under section 115 (g), Internal Revenue Code.
1Opinion of the Court
OPINION.
Sternhagen, Judge:
The Commissioner determined a deficiency of $10,562.78 in withholding income tax for 1939, holding that the exchange in 1939 by petitioner’s preferred shareholders of preferred shares for its debentures was taxable to them as a dividend to the extent of earnings and profits. The petitioner contends that such exchange was a recapitalization pursuant to a plan of reorganization, gain from which is not recognized. The facts are stipulated.
The petitioner is a Delaware corporation with its principal office in Detroit, Michigan. It there filed for 1939 an “Annual Return of…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
- De Nobili Cigar Co. v. CommissionerUnited States Tax Court · 1943
3Cited by10 opinions
- Bazley v. CommissionerUnited States Tax Court · 1945
- Penfield v. DavisDistrict Court, N.D. Alabama · 1952
- Adams v. CommissionerUnited States Tax Court · 1945
- Adams v. CommissionerUnited States Tax Court · 1945
- Adams v. CommissionerUnited States Tax Court · 1945
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