Samuel E. Radnitz, Jr., and Hattie Radnitz v. United States

In a suit to recover taxes paid under protest, taxpayers appeal from a judgment of the District Court denying their motion for summary judgment and granting defendant’s motion for summary judgment. The claim arises by virtue of the treatment by the Commissioner of Internal Revenue as dividend income rather than capital gain of certain amounts received by taxpayers upon a transfer of stock. Taxpayers owned 30% of the outstanding shares of Turner Hall Corporation (a New York corporation), which in turn owned 100% of Tylon Products, Inc. Taxpayers also owned 15 of the 100 outstanding shares of…