Phillips v. Commissioner
United States Tax Court
In 1938 and 1939 Pennsylvania Corporation made distributions to its shareholders and claimed credits for dividends paid. Upon an audit in 1940 of Pennsylvania Corporation's returns for 1938 and 1939 portions of the dividends paid credit claimed for those years were disallowed on the ground that the distributions had been made in excess of its accumulated earnings or profits.
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In 1938 and 1939 Pennsylvania Corporation made distributions to its shareholders and claimed credits for dividends paid. Upon an audit in 1940 of Pennsylvania Corporation's returns for 1938 and 1939 portions of the dividends paid credit claimed for those years were disallowed on the ground that the distributions had been made in excess of its accumulated earnings or profits. In 1941 a closing agreement on Form 866 as to final determination of the amount of tax liability of Pennsylvania Corporation for the years 1938 and 1939 was duly executed and approved. The liability determined and set…
1Opinion of the Court
OPINION.
Harron, Judge:
Respondent determined that the distributions which each of the petitioners received in 1941 from Pennsylvania Investment & Real Estate Corporation were taxable as dividends under section 115 (a) of the Internal Revenue Code. The ultimate question is .whether the distributions were made from earnings or profits of the corporation accumulated after February 28, 1913. Pennsylvania Investment & Real Estate Corporation had no current earnings in 1941 and the parties are agreed that it had no accumulated earnings or profits of its own. Respondent contends that under the rule…
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- Luckman v. CommissionerUnited States Tax Court · 1971
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