McLouth Steel Corporation v. The United States

REED, Justice (Ret.),

sitting by designation.

Sections 1800, 1801 of the Internal Revenue Code of 1939 impose an ad valorem documentary stamp tax on “all bonds, debentures, or certificates of indebtedness issued by any corporation * * * ” 1 We are called upon to determine whether two instruments issued by the taxpayer in 1953 are bonds within the meaning of this statute.

The taxpayer, McLouth Steel Corporation, considered the instruments taxable in 1953, for it purchased and affixed the stamps at the time of their issuance. However, after the decision of the Supreme Court in United States v.…