Plastic Binding Corp. v. Commissioner
United States Tax Court
Upon the death of the president, founder, and largest shareholder of a corporation, his widow demanded that she be made president and receive an amount equal to his salary for 2 years. Her demands were resisted by other shareholders who controlled 50 percent of the corporation's stock, and a compromise was reached whereby the corporation paid her the equivalent of her late husband's salary for 18 months.
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Upon the death of the president, founder, and largest shareholder of a corporation, his widow demanded that she be made president and receive an amount equal to his salary for 2 years. Her demands were resisted by other shareholders who controlled 50 percent of the corporation's stock, and a compromise was reached whereby the corporation paid her the equivalent of her late husband's salary for 18 months. Held: Upon the facts, the amounts so received by the widow are includable in her gross income, except for any portion that may be excludable under sec. 101(b), I.R.C. 1954. Held further: The…
1Opinion of the Court
Plastic Binding Corporation v. Commissioner. Bertha I. Spinner v. Commissioner.
Plastic Binding Corp. v. Commissioner
Docket Nos. 117-65, 7124-65.
United States Tax Court
T.C. Memo 1967-149; 1967 Tax Ct. Memo LEXIS 109; 26 T.C.M. (CCH) 687; T.C.M. (RIA) 67149;
July 13, 1967
Upon the death of the president, founder, and largest shareholder of a corporation, his widow demanded that she be made president and receive an amount equal to his salary for 2 years. Her demands were resisted by other shareholders who controlled 50 percent of the corporation's stock, and a compromise was reached whereby the…
2Cases cited27 opinions
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Bogardus v. CommissionerSupreme Court of the United States · 1937
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
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