United States v. Rives E. And Lillian B. Worrell

This is another case in which a stockholder and officer of a closely held corporation seeks to deduct as ordinary losses or as business bad debts amounts paid by him as an indemnitor of the corporation’s surety creditor. The case was tried by the district court solely on stipulations and documentary exhibits, 269 F.Supp. 897. The facts presented to the trial court are substantially identical with those which were before this court in the case of United States v. Byck (5 Cir.), 325 F.2d 551, since Byck and Wor-rell were two equal stockholders in the Byck-Worrell Construction Company, of which…