Hamilton Mfg. Co. v. United States

LINDLEY, Circuit Judge.

Plaintiff, a Wisconsin corporation, brought suit in the District Court to recover undistributed profits tax assessed and paid for the year 1936 under the Revenue Act of that year, 26 U.S.C. § 14, which imposed a surtax on retained corporate net income earned but not dis tributed to the stockholders. The statute was amended in 1942 in order to provide retroactive relief for taxpayers who had been taxed, even though prohibited by state law from paying dividends. 26 U.S.C. § 501(a). Plaintiff averred that it had a deficit in its earnings account, i. e., its earned surplus,…