Fountain v. Commissioner
United States Tax Court
1. An electing small business corporation under subch. S of the 1954 Code within 2 1/2 months after the close of its taxable year ended July 31, 1967, issued checks to its shareholders totaling the undistributed taxable income for that year.
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1. An electing small business corporation under subch. S of the 1954 Code within 2 1/2 months after the close of its taxable year ended July 31, 1967, issued checks to its shareholders totaling the undistributed taxable income for that year. There were insufficient funds in the corporation's bank account to pay the checks and they were never cashed by the shareholders but were instead endorsed back to the corporation as loans after the close of the corporation's taxable year ended July 31, 1969. The corporation terminated its subch. S election for the taxable year ended July 31, 1968. Held:…
1Opinion of the Court
C. D. and Sarah Fountain, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Fountain v. Commissioner
Dockets Nos. 4967-70, 4968-70, 4971-70
United States Tax Court
59 T.C. 696; 1973 U.S. Tax Ct. LEXIS 170; 59 T.C. No. 69;
February 22, 1973, Filed
Decisions will be entered under Rule 50.
1. An electing small business corporation under subch. S of the 1954 Code within 2 1/2 months after the close of its taxable year ended July 31, 1967, issued checks to its shareholders totaling the undistributed taxable income for that year. There were insufficient funds in the corporation's bank…
2Cases cited14 opinions
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Fountain v. CommissionerUnited States Tax Court · 1973
- Marvin A. Heidt and Beatrice Heidt v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1959
- Anthony P. Miller, Inc. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1947
- Hyland v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
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