Union Bankers Ins. Co. v. Commissioner
United States Tax Court
Held: 1. Pursuant to sec. 304(a)(2), I.R.C. 1954, the purchase by Bankers of stock of its parent, Union, from General, the controlling stockholder of Union, resulted in a constructive dividend from Bankers to Union to the extent of Bankers' earnings and profits, and in turn a distribution by Union in redemption of its stock from General. 2. Both Bankers and Union made a distribution to shareholders through the purchase by Bankers of Union's stock held by General within the…
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Held: 1. Pursuant to sec. 304(a)(2), I.R.C. 1954, the purchase by Bankers of stock of its parent, Union, from General, the controlling stockholder of Union, resulted in a constructive dividend from Bankers to Union to the extent of Bankers' earnings and profits, and in turn a distribution by Union in redemption of its stock from General. 2. Both Bankers and Union made a distribution to shareholders through the purchase by Bankers of Union's stock held by General within the meaning of sec. 815, Bankers by a dividend distribution to Union, and Union by a distribution in redemption of its stock…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in Federal income tax of Union Bankers Insurance Co. and its liability as transferee of Bankers Service Life Insurance Co. for Federal income tax of that company as follows:
Amount of Amount of Years deficiency liability
1963_ $180,672.80
1/1/64 to 6/30/64 _ 12,221.85
1960_ $32,607.83
1963_ 304,562.30
1964_ 95,733.05
1965_ 172,293.70
1966_ 13,698.90
1967_ 129,372.16
The parties have disposed of some of the issues raised by the pleadings by agreement, leaving for our decision the following:(1) Whether Union Bankers Insurance Co. received a constructive…
2Cases cited33 opinions
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Sandor v. CommissionerUnited States Tax Court · 1974
- Houston Chronicle Publishing Company, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
- Commissioner of Internal Revenue v. Seaboard Finance Company, Seaboard Finance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Ninth Circuit · 1966
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3Cited by23 opinions
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- Official Committee of Unsecured Creditors of Buckhead America Corp. v. Reliance Capital Group, Inc. (In Re Buckhead America Corp.)District Court, D. Delaware · 1994
- Capital Blue Cross and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 2005
- Trigon Insurance v. United StatesDistrict Court, E.D. Virginia · 2002
- Durovic v. CommissionerUnited States Tax Court · 1975
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