Parker v. United States
Court of Appeals for the Seventh Circuit
The appellant, a Federal taxpayer, appeals from the judgment of the District Court overruling his claim for a refund asserted by him to be an overpayment of his 1929 taxes. The Commissioner held that the redemption of certain preferred stock was the equivalent of a taxable dividend. Payment of the tax was made by the taxpayer under protest and after demand, etc. for its repayment this action was begun in the District Court.
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The appellant, a Federal taxpayer, appeals from the judgment of the District Court overruling his claim for a refund asserted by him to be an overpayment of his 1929 taxes. The Commissioner held that the redemption of certain preferred stock was the equivalent of a taxable dividend. Payment of the tax was made by the taxpayer under protest and after demand, etc. for its repayment this action was begun in the District Court. A jury was waived, and the Court made special findings and conclusions of law. From an adverse judgment, the taxpayer has appealed.
1Opinion of the Court
EVANS, Circuit Judge.
The sole question is the correctness of the conclusion, upon facts not in dispute, to the effect that the redemption of the preferred stock was “essentially equivalent to the distribution of a taxable dividend” and therefore taxable as such.
The Facts: Taxpayer was the owner of 175 shares of the preferred stock ot the Parker Pen Company, which were redeemed for $18,375 in 1929. The stock was acquired in August, 1920, July, 1922, and January, 1925. In his 1929 return, treating the redemption as a sale, Parker reported an income resulting therefrom of $12,846.67 which was…
2Cases cited13 opinions
- McGuire v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1936
- Hyman v. HelveringCourt of Appeals for the D.C. Circuit · 1934
- Randolph v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1935
- Brown v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1935
- Commissioner of Internal Revenue v. QuackenbosCourt of Appeals for the Second Circuit · 1935
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3Cited by8 opinions
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Fox v. HarrisonCourt of Appeals for the Seventh Circuit · 1944
- In Re Estate Of Irwin G. Lukens, Deceased. George E. Lukens, PetitionersCourt of Appeals for the Third Circuit · 1957
- Patty v. HelveringCourt of Appeals for the Second Circuit · 1938
- Wilcox v. CommissionerUnited States Board of Tax Appeals · 1941
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