Strong Mfg. Co. v. Commissioner
United States Board of Tax Appeals
Contract requiring application of a portion of petitioner's earnings and profits for the taxable year against indebtedness incurred prior to 1936. held, to require irrevocable setting aside of such portion and to entitle petitioner to a credit for purposes of the undistributed profits tax to the extent that such payment was actually made in the taxable year. Revenue Act of 1936, sec. 26(c)(2).
1Opinion of the Court
*1277OPINION.
OppeR :
The present issue calls for the application to the foregoing facts of the provisions of section 26 (c) (2) of Revenue Act of 19361 entitling a corporation to a “credit” against the “undistributed profits tax” if it complies with certain requirements.
On this record, compliance with these conditions is questionable only in one respect. There was a written' contract executed prior to May 1, 1936, containing a provision expressly dealing with the disposition of earnings and profits for the taxable year. The credit claimed is for an amount equal to the portion of such earnings and…
2Cited by2 opinions
- Helvering v. Moloney Electric Co.Court of Appeals for the Eighth Circuit · 1941
- Strong Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1940