Hatfield v. Commissioner
United States Board of Tax Appeals
A corporation of which the petitioner was a stockholder dissolved on December 2, 1930, and turned its assets, consisting of cash and stock of 11 corporations, over to its attorney for distribution according to the interests of the stockholders in the assets. None of the stockholders ever appointed the attorney or acquiesced in his appointment as their agent to receive the stock in their behalf.
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A corporation of which the petitioner was a stockholder dissolved on December 2, 1930, and turned its assets, consisting of cash and stock of 11 corporations, over to its attorney for distribution according to the interests of the stockholders in the assets. None of the stockholders ever appointed the attorney or acquiesced in his appointment as their agent to receive the stock in their behalf. In 1931 the stocks were reissued in favor of, and distributed to, the corporation's stockholders. Held, that the liquidating dividend paid in stock was not received by the petitioner in 1930 for tax…
1Opinion of the Court
*3OPINION.
Seawell :
The question is the narrow one of whether the liquidating dividend paid to the petitioner in stock was received by him in 1930. The petitioner admits that the cash was distributed to him in 1930, but insists that the stock was not received until 1931.
The statutes of Kentucky provide that when dissolution of a corporation organized under its laws results from voluntary action of the stockholders, as here, the corporation “ may thereafter continue for the purpose of closing up its business but for no other purpose; and it shall be the duty of the officers to settle up its…
2Cases cited1 opinion
- Avery v. CommissionerSupreme Court of the United States · 1934
3Cited by8 opinions
- Byrne v. CommissionerUnited States Tax Court · 1970
- Vern Realty, Inc. v. CommissionerUnited States Tax Court · 1972
- Yeckes v. CommissionerUnited States Tax Court · 1966
- Buhler v. CommissionerUnited States Tax Court · 1970
- Byrne v. CommissionerUnited States Tax Court · 1970
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