Estate of Uris v. Commissioner
United States Tax Court
Held: Amount in excess of proper charge to capital under sec. 312(e), I.R.C. 1954, upon redemption of stock, which meets the provisions of sec. 302(a), is properly charged to earnings and profits and is subject to the limitations of sec. 312(a) so that the reduction of earnings and profits is "to the extent thereof" in the year of redemption.
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Held: Amount in excess of proper charge to capital under sec. 312(e), I.R.C. 1954, upon redemption of stock, which meets the provisions of sec. 302(a), is properly charged to earnings and profits and is subject to the limitations of sec. 312(a) so that the reduction of earnings and profits is "to the extent thereof" in the year of redemption. Any amount of redemption payments chargeable to earnings and profits which is in excess of the current and accumulated earnings and profits present in the year of redemption cannot be used to reduce earnings and profits accumulated in subsequent years.
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in the Federal income tax of petitioners Percy Uris and Joanne Uris in the amounts of $629,333 and $15,284 for the calendar years 1969 and 1970, respectively. Respondent determined deficiencies in the Federal income tax of petitioners Harold D. Uris and Ruth Uris in the amount of $611,835 for the calendar year 1969.
The issue for decision is the extent to which a distribution in 1969 by Uris Lexington, Inc., to each of its two shareholders (petitioners in this case) was from accumulated earnings and profits of that corporation so as to cause the…
2Cases cited12 opinions
- Enoch v. CommissionerUnited States Tax Court · 1972
- Stephens v. CommissionerUnited States Tax Court · 1973
- Anderson v. CommissionerUnited States Tax Court · 1976
- Van Norman Co. v. WelchCourt of Appeals for the First Circuit · 1944
- Helvering v. JarvisCourt of Appeals for the Fourth Circuit · 1941
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3Cited by7 opinions
- Steffen v. CommissionerUnited States Tax Court · 1978
- Juha v. Comm'rUnited States Tax Court · 2012
- Iglesias v. CommissionerUnited States Tax Court · 1981
- Estate of Uris v. CommissionerCourt of Appeals for the Second Circuit · 1979
- Ca 79-3190 Estate of Percy Uris, Deceased, Irving Trust Co., and Joanne Uris v. Commissioner of Internal Revenue, Harold D. Uris and Ruth Uris v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1979
2 more not listed; retrieve them via the Exa API.