Robeson v. Commissioner
United States Board of Tax Appeals
Where a corporation organized on January 1, 1923, pays a dividend on May 22, 1923, in excess of the amount of its earnings to that date, to the extent of the excess the stockholders have not received dividends within the meaning of section 201(a) of the Revenue Act of 1921, and this excess should be applied in accordance with section 201(c). This is so regardless of the fact that the corporation resulted from the consolidation of two predecessor corporations thereafter…
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Where a corporation organized on January 1, 1923, pays a dividend on May 22, 1923, in excess of the amount of its earnings to that date, to the extent of the excess the stockholders have not received dividends within the meaning of section 201(a) of the Revenue Act of 1921, and this excess should be applied in accordance with section 201(c). This is so regardless of the fact that the corporation resulted from the consolidation of two predecessor corporations thereafter dissolved, which had earnings accumulated since February 28, 1913, more than sufficient to pay this balance of the dividend.
1Opinion of the Court
*324OFINION.
Murdock :
The petitioners contend that the Commisisoner erred j.n including in the computation of their respective incomes, the total *325amount of the dividends which each received from the Robeson-Rochester Corporation on May 22,1923, claiming that 33.545 per cent of the total amount was not earnings of the new corporation since January 1,1923, the date upon which it began business and that such percentage of the total dividends received by each did not represent taxable dividends, but on the contrary should be used to reduce the basis of their stock in the Robeson-Rochester Corporation.
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2Cited by3 opinions
- Crocker v. CommissionerUnited States Board of Tax Appeals · 1934
- Crocker v. CommissionerUnited States Board of Tax Appeals · 1934
- Robeson v. CommissionerUnited States Board of Tax Appeals · 1929