Wilbur Sec. Co. v. Commissioner
United States Tax Court
1. Petitioner's yearly payments, which it designated as interest, on its bills payable account, held, on the facts of this case, to constitute dividends and not deductible interest. 2. Held, further, petitioner did not realize $ 840 interest income from amount temporarily withdrawn by one of its stockholders.
1Opinion of the Court
Train, Judge:
Respondent determined deficiencies in petitioner’s income taxes as follows:
Year Deficiency
1953_1_$13, 957.26
1954_ 17,254.17
1955_ 17, 254.18
The issues are (1) whether the amounts outstanding in petitioner’s bills payable account, upon which disbursements as interest expense were made during the years involved, constitute bona fide indebtedness of the corporation or whether, in reality, such amoimts constitute equity capital invested in petitioner’s business; and (2) whether petitioner failed to report interest income in the amount of $840 on its income and excess profits tax…
2Cases cited7 opinions
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Dobkin v. CommissionerUnited States Tax Court · 1950
- Gunn v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. HP Hood & SonsCourt of Appeals for the First Circuit · 1944
2 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Meyer v. CommissionerUnited States Tax Court · 1966
- Niedermeyer v. CommissionerUnited States Tax Court · 1974
- Foresun, Inc. v. CommissionerUnited States Tax Court · 1964
- Consumers Credit Rural Electric Cooperative Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- Zilkha & Sons, Inc. v. CommissionerUnited States Tax Court · 1969
35 more not listed; retrieve them via the Exa API.