Megeath v. Commissioner
United States Board of Tax Appeals
1. Held, upon the evidence, that the cash dividend of $344,050 distributed by the Sheridan Coal Co. on April 16, 1920, was paid out of earnings accumulated after February 28, 1913, and that the entire amounts received by the petitioners who participated therein are taxable to them. 2. Stock dividends are not distributions of corporate earnings or profits.
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1. Held, upon the evidence, that the cash dividend of $344,050 distributed by the Sheridan Coal Co. on April 16, 1920, was paid out of earnings accumulated after February 28, 1913, and that the entire amounts received by the petitioners who participated therein are taxable to them. 2. Stock dividends are not distributions of corporate earnings or profits. Eisner v. Macomber,252 U.S. 189. Where a corporation in 1917 and 1918 declares and pays stock dividends which are charged against surplus, and thereafter, in 1920, declares and pays a cash dividend, in an amount which may exceed the reduced…
1Opinion of the Court
APPEALS OF GEORGE W. MEGEATH ET AL. 1
Megeath v. Commissioner
Docket Nos. 7118, 2815, 7086, 7119, 7959, 9248.
United States Board of Tax Appeals
5 B.T.A. 1274; 1927 BTA LEXIS 3639;
January 28, 1927, Promulgated
1. Held, upon the evidence, that the cash dividend of $344,050 distributed by the Sheridan Coal Co. on April 16, 1920, was paid out of earnings accumulated after February 28, 1913, and that the entire amounts received by the petitioners who participated therein are taxable to them.
2. Stock dividends are not distributions of corporate earnings or profits. Eisner v. Macomber,252 U.S. 189.…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Towne v. McElligottDistrict Court, S.D. New York · 1921
- Wilson v. CommissionerUnited States Board of Tax Appeals · 1926