Piller v. Commissioner
United States Board of Tax Appeals
During the taxable period the petitioner, which kept its books and filed its tax return on the cash receipts and disbursements basis, deposited with the tax commission of New York State certain corporate bonds to secure the payment of an estimated inheritance or transfer tax imposed by the laws of that state with respect to certain contingent interests created by the will of the petitioner's testator.
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During the taxable period the petitioner, which kept its books and filed its tax return on the cash receipts and disbursements basis, deposited with the tax commission of New York State certain corporate bonds to secure the payment of an estimated inheritance or transfer tax imposed by the laws of that state with respect to certain contingent interests created by the will of the petitioner's testator. Held, that the deposit of the bonds did not constitute payment of the tax and that the amount thereof is not an allowable deduction in determining the petitioner's taxable net income.
1Opinion of the Court
*801OPINION.
Tbammell :
The petitioner contends that the amount of $10,605.63 disallowed by the respondent was paid by the deposit with the tax commission of the State of New York of the Bertal Building Corporation bonds and that under section 23 of the Revenue Act of 1928 the amount constituted an allowable deduction in determining tax*802able net income. The respondent contends that the deposit of the bonds did not constitute payment of the taxes and that the amount in controversy was not allowable.
The Revenue Act of 1928 provides:
SEO. 23. DEDUCTIONS FROM GROSS INCOME.
In computing net income there…
2Cases cited5 opinions
- Salomon v. State Tax Comm'n of NYSupreme Court of the United States · 1929
- In re the Transfer Tax upon the Estate of HechtAppellate Division of the Supreme Court of the State of New York · 1927
- In Re Estate of HechtNew York Court of Appeals · 1927
- Bausher v. LynchAppellate Division of the Supreme Court of the State of New York · 1931
- People Ex Rel. Bausher v. LynchNew York Court of Appeals · 1931
3Cited by2 opinions
- Fehrs Finance Company, Cross-Appellee v. Commissioner of Internal Revenue, Cross-AppellantCourt of Appeals for the Eighth Circuit · 1973
- Piller v. CommissionerUnited States Board of Tax Appeals · 1934