Seiberling Rubber Co. v. United States

JONES, Chief Judge.

The basis of this suit is the recovery or refund of undistributed profits tax paid by the plaintiff on account of its fiscal year ending October 31, 1938.

The 1936 Act, Revenue Act 1936, § 14, 26 U.S.C.A.Int.Rev.Acts, page 823, imposed a surtax on current year undistributed net income even- where a corporation had an accumulated deficit, and the corporation was prohibited by state law from paying a dividend. The right of recovery is dependent upon whether the taxpayer has brought itself within the remedial provisions of the 1942 amendment, Revenue Act 1942, § 501, 26…