Commissioner of Internal Revenue v. Straub

BUFFINGTON, Circuit Judge.

In this case we have a close family business which had accumulated a large surplus and was desirous of' gradually liquidating its assets and going out of what had once been a highly prosperous, but was now a losing, business. The Commissioner determined the payments made to the taxpayer shareholder constituted dividends and not partial liquidation. On appeal, the Tax Board held with the taxpayer, and the Commissioner took this appeal.

Without reciting the details of the case, it suffices to say the pertinent facts found and the ruling of the Tax Board are summarized…