Levy v. Commissioner
United States Tax Court
1. Corporate distributions to or on behalf of a stockholder held taxable as dividends to the extent of available earnings and profits. Such distributions were not loans, nor was there any indebtedness that could properly offset such distributions.
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1. Corporate distributions to or on behalf of a stockholder held taxable as dividends to the extent of available earnings and profits. Such distributions were not loans, nor was there any indebtedness that could properly offset such distributions. However, the distributions were supported only in part by current earnings and profits; a required adjustment which eliminated the corporation's accumulated earnings and profits results in the treatment of the excess of the distributions over current earnings and profits as capital gain, there being no contention that the stockholder had any…
1Opinion of the Court
Respondent determined a deficiency in petitioners’ income tax for the year 1951 in the amount of $25,049.82. By an amendment 'to their petition, petitioners claim an overpayment of income tax for the same year in the amount of “approximately $8,500.”
The principal question is whether certain payments made by a corporation to and for a stockholder-employee are taxable as dividends to that employee. Also in issue is whether certain expenditures gave rise to allowable deductions.
FINDINGS OF FACT.
Some of the facts were stipulated and are incorporated herein by this reference.
Petitioners, Lou Levy…
2Cases cited1 opinion
- Helvering v. EubankSupreme Court of the United States · 1941
3Cited by24 opinions
- Holt v. CommissionerUnited States Tax Court · 1977
- Wilson v. CommissionerUnited States Tax Court · 1966
- Simenon v. CommissionerUnited States Tax Court · 1965
- Holmes Enterprises, Inc. v. CommissionerUnited States Tax Court · 1977
- Fidelity Commercial Co. v. CommissionerUnited States Tax Court · 1970
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