Estate of Schneider v. Commissioner
United States Tax Court
X, a corporation controlled by A, was a holding company for a group of affiliated corporations. X established a stock bonus plan, pursuant to which employees of the affiliated corporations could elect to use some or all of their cash bonuses to "purchase" Class B nonvoting stock from A. For each employee who elected to receive stock, corporation Y, a wholly owned subsidiary of X, issued two checks.
Read the full summary
X, a corporation controlled by A, was a holding company for a group of affiliated corporations. X established a stock bonus plan, pursuant to which employees of the affiliated corporations could elect to use some or all of their cash bonuses to "purchase" Class B nonvoting stock from A. For each employee who elected to receive stock, corporation Y, a wholly owned subsidiary of X, issued two checks. One check represented the cash portion of the bonus, net of withholding taxes; the other check represented the book value of the shares that the employee elected to purchase from A. This latter…
1Opinion of the Court
CHABOT, Judge:
Respondent determined deficiencies in Federal individual income tax against Al J. Schneider and Agnes Schneider for 1975 and 1976 in the amounts of $17,745.84 and $21,415, respectively. After concessions by both sides, the issues for decision are as follows:(1) Whether certain dispositions of stock by Al J. Schneider constitute (a) sales of stock by him to employees or (b) redemptions of the stock from him.(2) If the dispositions are redemptions, then whether the redemptions are essentially equivalent to dividends.(3) Alternatively, whether the dispositions are taxable under…
2Cases cited18 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
13 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Cal-Maine Foods, Inc. v. CommissionerUnited States Tax Court · 1989
- Mais v. CommissionerUnited States Tax Court · 1968
- Gunther v. CommissionerUnited States Tax Court · 1989
- Estate of Al J. Schneider, Donald J. Schneider, Personal Representatives, and Agnes Schneider v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1988
- Tracinda Corp. v. CommissionerUnited States Tax Court · 1998
17 more not listed; retrieve them via the Exa API.