Maguire v. Commissioner
United States Tax Court
Dividend -- Earnings and Profits of Taxable Year -- Accumulated Deficit -- Sec. 115 (a ) (2), I. R. C. -- A dividend as defined in section 115 (a) of the Code includes a distribution made by a corporation to its stockholders out of earnings and profits of the taxable year even though those earnings and profits were not sufficient to wipe out an accumulated deficit existing at the beginning of the taxable year.
1Opinion of the Court
OPINION.
MuRdock, Judge:
The Commissioner determined a deficiency of $281.25 in the income tax of the petitioner for 1945. The issue for decision is whether $70,241.21 which the petitioner received in 1945 from the Missouri-Kansas Pipe Line Company (herein called Mokan) was taxable as a dividend under section 115 (a) (2), Internal Revenue Code, or was a distribution in partial liquidation which must be treated as payment in exchange for the stock under section 115 (c) of the Code. The facts have all been stipulated. The stipulation and all of the exhibits in the case are adopted as the findings…
2Cases cited3 opinions
- Helvering v. Alworth TrustCourt of Appeals for the Eighth Circuit · 1943
- Lehman v. CommissionerUnited States Tax Court · 1944
- Ratterman v. CommissionerCourt of Appeals for the Sixth Circuit · 1949
3Cited by9 opinions
- Wilson v. CommissionerUnited States Tax Court · 1957
- Maguire v. CommissionerUnited States Tax Court · 1968
- William G. Maguire v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1955
- Waldheim v. CommissionerUnited States Tax Court · 1956
- Maguire v. CommissionerUnited States Tax Court · 1968
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