Dall v. Commissioner
United States Tax Court
Petitioner commenced a derivative stockholder's suit against Tennessee Gas and Transmission Company in a United States District Court on April 23, 1945. He proposed a settlement of the action which was accepted and was approved by the District Court on January 15, 1946. Such settlement provided that petitioner would receive 140.5 shares of stock to compensate him for expenses incurred in prosecuting the suit and to be incurred by him in implementing a natural gas purchase…
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Petitioner commenced a derivative stockholder's suit against Tennessee Gas and Transmission Company in a United States District Court on April 23, 1945. He proposed a settlement of the action which was accepted and was approved by the District Court on January 15, 1946. Such settlement provided that petitioner would receive 140.5 shares of stock to compensate him for expenses incurred in prosecuting the suit and to be incurred by him in implementing a natural gas purchase contract. Petitioner received stock having a value of $ 15,235.42 pursuant to the above-described settlement, which he…
1Opinion of the Court
OPINION.
Rice, Judge:
Petitioner concedes that the entire amount which he received pursuant to the settlement of his suit against Tennessee and certain of its directors was taxable income. He contends, however, that he is entitled to report such amount under the provisions of section 107 (a) of the 1939 Code.
The respondent argues that the petitioner has failed to bring himself 'within the specific requirements of that section. It is apparent from our findings of fact herein that the petitioner has so failed.
The essential fact which the petitioner has not established is that stock having a fair…
2Cases cited2 opinions
- Myers v. CommissionerUnited States Tax Court · 1948
- Love v. United StatesDistrict Court, E.D. Missouri · 1949
3Cited by1 opinion
- Dall v. CommissionerUnited States Tax Court · 1954