Almours Secur., Inc. v. Commissioner
United States Board of Tax Appeals
Petitioner, formed in 1926, issued substantially all of its capital stock (except stock dividends later issued) for securities owned by Alfred I. du Pont, his wife, and brother-in-law.
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Petitioner, formed in 1926, issued substantially all of its capital stock (except stock dividends later issued) for securities owned by Alfred I. du Pont, his wife, and brother-in-law. It retained nearly all of these securities and acquired others out of earnings through 1932. Most of its income from the date of organization to the end of 1932 was from dividends and from profits upon the sale of shares of stock of E. I. du Pont de Nemours, Inc. From the date of organization to the end of 1932 only small amounts of its aggregate profits were distributed to its stockholders as cash dividends.…
1Opinion of the Court
*67OPIKION.
Smith:
The respondent has held that the petitioner is subject to tax for 1931 and 1932 under the provisions of section 104 of the Revenue Acts of 1928 and 1932. There are no material differences between the provision in the two acts. Section 104 of the Revenue Act of 1928 provides in part as follows:(a) If any corporation, however created or organized, is formed or availed of for the purpose of preventing the imposition of the surtax upon its shareholders through the medium of permitting its gains and profits to accumulate instead of being divided or distributed, there shall be levied,…
2Cited by11 opinions
- Almours Securities v. Commissioner of Internal Rev.Court of Appeals for the Fifth Circuit · 1937
- Battelstein Investment Co. v. United StatesDistrict Court, S.D. Texas · 1969
- Trapp v. United StatesDistrict Court, W.D. Oklahoma · 1948
- O'Sullivan v. CommissionerUnited States Tax Court · 1994
- Almours Secur., Inc. v. CommissionerUnited States Board of Tax Appeals · 1936
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