Floyd, Inc. v. Commissioner
United States Board of Tax Appeals
PERSONAL HOLDING COMPANY SURTAX - INDEBTEDNESS. - On December 31, 1934, petitioner set aside in a reserve fund an amount to be applied on the payment of income tax deficiencies for 1930 and 1931 proposed in a deficiency notice mailed on June 8, 1934. Held that the petitioner's liability for income tax for 1930 and 1931 was incurred in each of those years; that the liability for such taxes so incurred constituted an "indebtedness incurred prior to January 1, 1934" within the…
Read the full summary
PERSONAL HOLDING COMPANY SURTAX - INDEBTEDNESS. - On December 31, 1934, petitioner set aside in a reserve fund an amount to be applied on the payment of income tax deficiencies for 1930 and 1931 proposed in a deficiency notice mailed on June 8, 1934. Held that the petitioner's liability for income tax for 1930 and 1931 was incurred in each of those years; that the liability for such taxes so incurred constituted an "indebtedness incurred prior to January 1, 1934" within the meaning of section 351(b)(2)(B) of the Revenue Act of 1934; that the amount set aside to retire such indebtedness was…
1Opinion of the Court
*102OPINION.
Tyson:
This proceeding involves a deficiency of $3,228.78 in personal holding company surtax for the year ended December 31, 1934.
The only question presented is whether in determining petitioner’s undistributed adjusted net income, under section 351 of the Revenue Act of 1934, the respondent erred in disallowing a claimed deduction of $13,445.25 representing an amount set aside from its income for 1934 to retire an indebtedness alleged to have been incurred prior to January 1, 1934.
The proceeding has been submitted upon a stipulation of facts, which is adopted and incorporated herein…
2Cases cited4 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Billings v. United StatesSupreme Court of the United States · 1914
- Price v. United StatesSupreme Court of the United States · 1926
- United States v. ProctorDistrict Court, S.D. Texas · 1922
3Cited by4 opinions
- Floyd, Inc. v. CommissionerUnited States Board of Tax Appeals · 1940
- Georgia Marble Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Guy T. Gibson, Inc. v. CommissionerUnited States Board of Tax Appeals · 1942
- Red Wing Potteries, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941