Wilcox v. Commissioner
United States Tax Court
Where a corporation, engaged in the telegraph business, in 1883 entered into an agreement whereby it leased all of its lines and properties to another corporation for a term of 99 years, with a provision for renewals extending the term to 999 years, and with the proviso that the lessee should pay the annual rental directly to the lessor's stockholders, and the lessor corporation was left with insufficient property to discharge the income tax liability subsequently determined…
Read the full summary
Where a corporation, engaged in the telegraph business, in 1883 entered into an agreement whereby it leased all of its lines and properties to another corporation for a term of 99 years, with a provision for renewals extending the term to 999 years, and with the proviso that the lessee should pay the annual rental directly to the lessor's stockholders, and the lessor corporation was left with insufficient property to discharge the income tax liability subsequently determined against it for such rentals, held, that the stockholders of the lessor corporation are liable as transferees under…
1Opinion of the Court
OPINION.
Aiujndell, Judge:
It is now well established that rentals such as were paid in 1930 by the lessee, Western Union, constitute income and are taxable to the lessor, New York Mutual, -even though paid directly to the lessor’s stockholders under the terms of the lease agreement. See United States v. Joliet & C. R. Co., 315 U. S. 44. The petitioners herein do not dispute the respondent’s finding that as a result of this rule income tax in the amount of $653.04 for the calendar year 1930 is still owing and unpaid by New York Mutual, nor do they deny' that during 1930 they received rentals…
2Cases cited6 opinions
- Phillips v. CommissionerSupreme Court of the United States · 1931
- United States v. Joliet & Chicago RailroadSupreme Court of the United States · 1942
- United States v. Warren R. Co.Court of Appeals for the Second Circuit · 1942
- United States v. Morris & Essex R. Co.Court of Appeals for the Second Circuit · 1943
- Johnson v. Western Union Telegraph Co.New York Court of Appeals · 1944
1 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Gumm v. CommissionerUnited States Tax Court · 1989
- Powers Photo Engraving Co. v. CommissionerUnited States Tax Court · 1951
- Leary v. CommissionerUnited States Tax Court · 1952
- Pallister v. United StatesDistrict Court, S.D. New York · 1960
- Estate of Smith v. CommissionerUnited States Tax Court · 1951
21 more not listed; retrieve them via the Exa API.