Henry C. Beck Co. v. Commissioner
United States Tax Court
In 1955, Management, a corporation wholly owned by petitioner and its joint venturer, Utah, distributed $ 250,000 to petitioner. The distribution was made by Management from a profit "realized" in 1954 from its two wholly owned corporations, but which it did not "recognize" for income tax purposes because of filing a consolidated return.
Read the full summary
In 1955, Management, a corporation wholly owned by petitioner and its joint venturer, Utah, distributed $ 250,000 to petitioner. The distribution was made by Management from a profit "realized" in 1954 from its two wholly owned corporations, but which it did not "recognize" for income tax purposes because of filing a consolidated return. Petitioner treated the distribution as an ordinary dividend, deducting 85 percent of the distribution under sec. 243, I.R.C. 1954, and reporting the remaining 15 percent as a taxable dividend. Respondent determined that the distribution was not a dividend…
1DissentTaNNENWald, J.
The majority decision herein is founded upon two principles: (1) that “earnings and profits” are not coextensive with “taxable income” and (2) that the earnings and profits of members of an affiliated group are not consolidated, notwithstanding the consolidation of taxable income during consolidated return periods. I have no quarrel with these principles, which have generally been accepted by the courts. But they are not, in my opinion, determinative and must be applied within the context of an equally accepted principle recognized by the majority, namely, that an item of income, the…
2Cases cited9 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Commissioner v. GordonSupreme Court of the United States · 1968
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Commissioner of Internal Revenue v. Oscar E. Baan and Evelyn K. BaanCourt of Appeals for the Ninth Circuit · 1967
- Bangor & A. R. Co. v. CommissionerUnited States Tax Court · 1951
4 more not listed; retrieve them via the Exa API.