Liston Zander Credit Company v. United States

JOHN R. BROWN, Circuit Judge.

The corporate Taxpayer appeals from an adverse judgment after a non jury trial of its tax refund suit. Taxpayer is both an insured and a stockholder of a credit insurance company. The immediate question is whether distributions to the Taxpayer by the insurance company from so-called earnings on insurance written for the Taxpayer are entitled to the 85% dividends received credit under § 26(b) (1) of the 1939 Code. 26 U.S.C.A. § 26(b) (1). If they are, then a very substantial tax benefit results ostensibly from the unique form in which the transaction is cast. As…