Duffy v. Commissioner
United States Tax Court
A distribution in 1939 by a New York corporation to its stockholders created a deficit on its books. The following year the stockholders, petitioner among them, returned a part of the distribution to make good the book deficit. Held, petitioner is taxable in 1939 upon his pro rata share of the company's earnings for that year, as subsequently adjusted, notwithstanding that the net amount retained by him after the repayment in 1940 was less than such share.
1Opinion of the Court
OPINION.
Arundell, Judge:
This proceeding is to test the correctness of respondent’s determination of a deficiency in income tax for the calendar year 1939 in the sum of $519.39. The sole issue is the taxability of that portion of a dividend paid to petitioner during the year 1939, by a blew York corporation from its earnings and profits for such year, which was returned to the corporation in the succeeding year. The facts have been stipulated and will be repeated here only in so far as is necessary to decide the question presented.
In December 1939 petitioner received a dividend of $24,929.58…
2Cases cited8 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Edwards v. DouglasSupreme Court of the United States · 1925
- McDonald v. WilliamsSupreme Court of the United States · 1899
- Cottrell v. Albany Card & Paper Manufacturing Co.Appellate Division of the Supreme Court of the State of New York · 1911
3 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- F. W. Drybrough v. Commissioner of Internal Revenue, L. N. Simpson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Bender v. CommissionerUnited States Tax Court · 1957
- Duffy v. CommissionerUnited States Tax Court · 1943
- Lang v. CommissionerUnited States Tax Court · 1982