Morris Trust v. Commissioner
United States Tax Court
American, a State bank, and Security, a national bank, consolidated under the national bank's charter. American had carried on an insurance brokerage business for more than 5 years. Since the national bank resulting from the consolidation would not be permitted to carry on such a business, American transferred the brokerage business to Insurance, a new corporation, for all its stock and distributed the stock of Insurance to the shareholders of American.
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American, a State bank, and Security, a national bank, consolidated under the national bank's charter. American had carried on an insurance brokerage business for more than 5 years. Since the national bank resulting from the consolidation would not be permitted to carry on such a business, American transferred the brokerage business to Insurance, a new corporation, for all its stock and distributed the stock of Insurance to the shareholders of American. Held, the transfer was a nontaxable spin-off, and the value of the distributed stock is not taxable to the shareholders as a dividend. Secs.…
1Opinion of the Court
Brtjoe, Judge:
The respondent determined a deficiency in income tax of the trust in the amount of $413.44 for the calendar year 1960. The sole issue for decision is whether the value of certain stock distributed to the trust was taxable as a dividend. Some facts are stipulated.
FINDINGS OF FACT
The stipulated facts are found and the exhibits to the stipulation are incorporated by this reference.
The petitioner is a trust established under the will of James N. Williamson, Jr., who died May 17, 1945. The North Carolina National Bank, of Charlotte, N.C., herein referred to for convenience as NCNB,…
2Cases cited14 opinions
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- United States v. IshamSupreme Court of the United States · 1873
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Goodell v. KochSupreme Court of the United States · 1930
- Helvering v. Elkhorn Coal Co.Court of Appeals for the Fourth Circuit · 1938
9 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Saxon v. Georgia Ass'n of Independent Insurance Agents, Inc.Court of Appeals for the Fifth Circuit · 1968
- Commissioner of Internal Revenue v. Mary Archer W. Morris Trust, North Carolina National Bank, TrusteeCourt of Appeals for the Fourth Circuit · 1966
- James J. Saxon (Succeeded in Office by William B. Camp on February 1, 1967), Comptroller of the Currency of the United States of America v. Georgia Association of Independent Insurance Agents, Inc., the Citizens and Southern National Bank v. Georgia Association of Independent Insurance Agents, Inc.Court of Appeals for the Fifth Circuit · 1968
- Olson v. CommissionerUnited States Tax Court · 1967
- King v. CommissionerUnited States Tax Court · 1971
3 more not listed; retrieve them via the Exa API.