Darrow v. Commissioner
United States Tax Court
Rendar paid no dividends during its 1968 fiscal taxable year but paid a dividend, adequate in amount to exhaust its "undistributed personal holding company income," before the 15th day of the third month following the close of such year.
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Rendar paid no dividends during its 1968 fiscal taxable year but paid a dividend, adequate in amount to exhaust its "undistributed personal holding company income," before the 15th day of the third month following the close of such year. Held: Even assuming that Rendar had reasonable cause for failing to pay any dividends during its 1968 fiscal year, such reasonable cause is no defense to its failure to comply with sec. 563(b), which requires that some dividends must have actually been paid during its 1968 fiscal year. It is therefore liable for the 70-percent personal holding company tax as…
1Opinion of the Court
Forrester, Judge:
Respondent has determined a deficiency of $16,249.17 in petitioner’s 1968 fiscal year Federal income taxes. The issue which we must decide is whether petitioner is liable for the 70-percent personal holding company tax imposed by section 541, I.R.C. 1954.1
FINDINGS OF FACT
All of the facts have been stipulated and are so found. Those necessary to an understanding of the case are detailed below.
Kenneth Farmer Darrow (hereinafter referred to as petitioner) was trustee for the shareholders and creditors of Rendar Enterprises, Ltd. (Rendar), at the time the petition herein was…
2Cases cited17 opinions
- Commissioner v. Lane-Wells Co.Supreme Court of the United States · 1944
- Sicanoff Vegetable Oil Corp. v. CommissionerUnited States Tax Court · 1957
- O'Sullivan Rubber Co. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1941
- Sicanoff Vegetable Oil Corporation v. Commissioner of Internal Revenue, Sicanoff Tallow Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1958
- Frelbro Corp. v. CommissionerUnited States Tax Court · 1961
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3Cited by5 opinions
- Montgomery Coca-Cola Bottling Co. v. United StatesUnited States Court of Claims · 1980
- Rod Warren Ink v. CommissionerUnited States Tax Court · 1989
- Darrow v. CommissionerUnited States Tax Court · 1975
- Jacqueline Sundstrom Trust v. CommissionerUnited States Tax Court · 1981
- Rod Warren Ink v. CommissionerUnited States Tax Court · 1989