Stein v. Commissioner
United States Tax Court
A corporation, which had enjoyed subch. S status in prior years, failed to qualify for the year 1969. As of Jan. 1, 1969, the undistributed taxable income for the taxable year 1968 and prior years was credited to a loans payable account in the names of its shareholders. From time to time, the shareholders subsequently withdrew sums from that account.
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A corporation, which had enjoyed subch. S status in prior years, failed to qualify for the year 1969. As of Jan. 1, 1969, the undistributed taxable income for the taxable year 1968 and prior years was credited to a loans payable account in the names of its shareholders. From time to time, the shareholders subsequently withdrew sums from that account. Held: Crediting the undistributed taxable income for the taxable year 1968 to the loans payable account on Jan. 1, 1969, did not result in a distribution of money to the corporation's shareholders within 2 1/2 months after the close of the…
1Opinion of the Court
OPINION
The petitioner owned 70 percent of the stock of Security Printing. For the taxable years 1959 to 1968 inclusive, Security Printing qualified as a corporation electing to be taxed under .subchapter S. That election was terminated for the taxable year 1969. No election was filed for the taxable year 1970.
As of January 1, .1969, Security Printing issued an additional 100 shares of capital stock at a stated value of $875 per share, thereby crediting $87,500 to the capital account. The remaining undistributed taxable income, which had been reported as income by the stockholders of Security…
2Cases cited3 opinions
- Fountain v. CommissionerUnited States Tax Court · 1973
- A. G. Attebury Et Ux. v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- McKelvy v. United StatesUnited States Court of Claims · 1973
3Cited by8 opinions
- Estate of McWhorter v. CommissionerUnited States Tax Court · 1978
- Moser v. CommissionerUnited States Tax Court · 1989
- E-B Grain Co. v. CommissionerUnited States Tax Court · 1983
- Goodale v. CommissionerUnited States Tax Court · 1981
- E-B Grain Co. v. CommissionerUnited States Tax Court · 1983
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