Coshocton Sec. Co. v. Commissioner
United States Tax Court
Taxpayer, a corporation, had four stockholders in 1940, and two stockholders, in each of the years 1946 and 1950, that owned more than 50 per cent in value of its outstanding stock. In each of those years one of the stockholders was the A. & J. Frank Company which was beneficially owned by one individual. Petitioner was not aware of this and had never inquired of A. & J. Frank Company as to how many stockholders it had or as to who was its beneficial owner.
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Taxpayer, a corporation, had four stockholders in 1940, and two stockholders, in each of the years 1946 and 1950, that owned more than 50 per cent in value of its outstanding stock. In each of those years one of the stockholders was the A. & J. Frank Company which was beneficially owned by one individual. Petitioner was not aware of this and had never inquired of A. & J. Frank Company as to how many stockholders it had or as to who was its beneficial owner. Had taxpayer made inquiry, A. & J. Frank Company would not have divulged this information. Taxpayer's entire income for each of the above…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The petitioner argues that it is not a personal holding company within the meaning of section 501 (a) of the Internal Revenue Code of 1939, since it was not such a company within the intendment of the statute; that it is not an “incorporated pocketbook” since in each of the years in question it always had more than 300 stockholders and it was never used to accumulate surplus so as to avoid surtax on its stockholders, though it was slow in paying dividends from its 1940, 1946, and 1950 income so that it could not qualify them as credits against the personal holding…
2Cases cited3 opinions
- O'Sullivan Rubber Co. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1941
- Tarbox Corp. v. CommissionerUnited States Tax Court · 1946
- American Package Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1942
3Cited by17 opinions
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Vaira v. CommissionerUnited States Tax Court · 1969
- BJR Corp. v. CommissionerUnited States Tax Court · 1976
- Saigh v. CommissionerUnited States Tax Court · 1961
- Sebago Lumber Co. v. CommissionerUnited States Tax Court · 1956
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