Brooks v. Commissioner of Internal Revenue

NORTHCOTT, Circuit Judge.

Petitioner is a resident of Maryland, and owned about 75 per cent, of the capital stock of the Sanford & Brooks Company, a corporation. There were seven or eight other stockholders, consisting of young men in the office of the company and a daughter of the petitioner. At a meeting of the stockholders of the company on March 11, 1919, an 8 per cent, dividend was declared on the capital stock, and $12,800, the amount to which petitioner was entitled, was credited to him on the company’s books. It was, however, agreed among the stockholders present at his meeting that…