Tootle v. Commissioner of Internal Revenue

STONE, Circuit Judge.

These are petitions to review redeterminations of the income taxes of petitioners for 1926. Each petitioner was a common stockholder in the Aunt Jemima Mills Company (a Delaware corporation), and the controversy, in each case, is whether a dividend paid in 1925 is to be treated as an ordinary or as a dividend in course of liquidation. The taxpayers included it in their return as an ordinary dividend. The commissioner and the Board of Tax Appeals determined it to be a partial dividend in a liquidation and, as such, taxable under section 201 (c) of tbe Revenue Act of 1926…