Miller v. Commissioner
United States Tax Court
Dividends -- Reduction of Authorized Capital Represented by No-Par Common Stock -- Surplus Credited to Stockholders. -- A corporation reduced its authorized capital represented by no-par common stock in 1936 from $ 50,000 to $ 2,500, credited the difference to capital surplus, and over 21 months later transferred the amount from capital surplus to stockholders' accounts pro rata.
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Dividends -- Reduction of Authorized Capital Represented by No-Par Common Stock -- Surplus Credited to Stockholders. -- A corporation reduced its authorized capital represented by no-par common stock in 1936 from $ 50,000 to $ 2,500, credited the difference to capital surplus, and over 21 months later transferred the amount from capital surplus to stockholders' accounts pro rata. A distribution to a cash basis stockholder in 1948, accounted for by the corporation as a payment on account of the balance in the account in the stockholder's name, was a dividend distribution within the meaning of…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined deficiencies in the income tax of the petitioners for 1948 as follows:
Docket No. Petitioners Amount
51489-Joseph H. and Rose B. Miller_$1,233.10
51492-Samuel and Emma S. Miller_ 7,116.98
The sole issue is whether cash distributions in 1948 by the Cleveland Towel Supply Co., to Joseph of $2,375 and to Samuel of $12,125 were taxable dividends, as contended by the Commissioner, or a return of capital, as contended by the petitioners. The facts have been stipulated.
The Joseph Millers and the Samuel Millers, each using a cash basis, filed joint…
2Cases cited6 opinions
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
- Beretta v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1944
- Leland v. CommissionerCourt of Appeals for the First Circuit · 1931
- Long v. CommissionerUnited States Tax Court · 1945
- Long v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Great Northern Investments, Inc. v. Commissioner of TaxationSupreme Court of Minnesota · 1964
- Miller v. CommissionerUnited States Tax Court · 1956