Bynum v. Commissioner

FOSTER, Circuit Judge.

Petitioners in this case are stockholders in the Badger Oil Co. and, in making individual returns for income taxes for the year 1935, deducted the cost of their stock from two dividends received from that company during the taxable year, contending they were liquidating dividends. The commissioner held that the dividends were ordinary dividends paid from earned surplus and determined deficiencies. The Board affirmed the Commissioner’s ruling. 40 B. T. A. 336.

*2The case was submitted on a stipulation of facts, certain documents and the testimony of two witnesses. The facts…