Truesdell v. Comm'r
United States Tax Court
P diverted to his own use income from his solely owned corporations. None of the diverted funds were reported as income on P's individual income tax returns or on the corporations' income tax returns for the years in issue.
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P diverted to his own use income from his solely owned corporations. None of the diverted funds were reported as income on P's individual income tax returns or on the corporations' income tax returns for the years in issue. R determined that the full amount of the diverted funds was taxable to P under sec. 61(a), I.R.C. 1954. Held, the diverted funds were constructive dividends and taxable to P in the manner provided by secs. 301(c) and 316(a). DiZenzo v. Commissioner, 348 F.2d 122 (2d Cir. 1965,) and Simon v. Commissioner, 248 F.2d 869 (8th Cir. 1957,) followed. Leaf v. Commissioner, 33 T.C.…
1Opinion of the Court
NlMS, Judge:
In his statutory notices of deficiency, respondent determined the following deficiencies in petitioners’ income tax and additions to tax for the following taxable years:
Additions to tax
Year Deficiency sec. 6653(b) 1
1977 $4,736.25 $2,368.13
1978 8,472.54 4,236.27
1979 26,678.44 13,339.22
In his amended answers respondent redetermined deficiencies in petitioners’ income tax and additions to tax for the 1977 and 1978 taxable years as follows:
Additions to tax
Year Deficiency sec. 6653(b)
1977 $6,424.09 $3,212.05
1978 18,969.90 9,484.95
Respondent’s redetermination increased the deficiencies…
2Cases cited30 opinions
- Holland v. United StatesSupreme Court of the United States · 1955
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- James v. United StatesSupreme Court of the United States · 1961
- Rowlee v. CommissionerUnited States Tax Court · 1983
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3Cited by122 opinions
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- United States v. David S. BokCourt of Appeals for the Second Circuit · 1998
- Boulware v. United StatesSupreme Court of the United States · 2008
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