Berger v. Commissioner
United States Tax Court
The petitioners who were stockholders in a closely held corporation received salaries in 1953 and 1954 which they themselves had authorized as directors. In 1956, after respondent had disallowed portions of such salaries as excessive, the petitioners, pursuant to a resolution adopted by the board of directors, repaid to the corporation in 1956 the excessive portions of their 1953 and 1954 salaries.
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The petitioners who were stockholders in a closely held corporation received salaries in 1953 and 1954 which they themselves had authorized as directors. In 1956, after respondent had disallowed portions of such salaries as excessive, the petitioners, pursuant to a resolution adopted by the board of directors, repaid to the corporation in 1956 the excessive portions of their 1953 and 1954 salaries. Held, there was no legal compulsion, either under Wisconsin law or because of purported representations made by respondent's agents, to make the repayments, and consequently such repayments to the…
1Opinion of the Court
Mulroney, Judge:
The respondent determined deficiencies in the petitioners’ income tax for the year 1956 as follows:
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The issue in these consolidated cases is whether certain amounts originally received by petitioners as salaries from a corporation and subsequently repaid to the corporation may be deducted by petitioners.
FINDINGS OF FACT.
Some of the facts were stipulated and they are herein included by this reference.
Ernest H. and Esther H. Berger, husband and wife, are residents of Milwaukee, Wisconsin. They filed a joint Federal income tax return for 1956 with the district…
2Cases cited9 opinions
- Healy v. CommissionerSupreme Court of the United States · 1953
- United States v. LewisSupreme Court of the United States · 1951
- Crellin's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1953
- Figge v. BergenthalWisconsin Supreme Court · 1907
- United States v. Ruben Simon, United States of America v. Meyer Simon, United States of America v. Morris SimonCourt of Appeals for the Sixth Circuit · 1960
4 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Pike v. CommissionerUnited States Tax Court · 1965
- Pahl v. CommissionerUnited States Tax Court · 1976
- Adams v. CommissionerUnited States Tax Court · 1972
- Barrett v. CommissionerUnited States Tax Court · 1991
- Pennzoil-quaker State Co. & Subsidiaries v. United StatesUnited States Court of Federal Claims · 2004
8 more not listed; retrieve them via the Exa API.