Legal Opinion
Lee Telephone Company v. Commissioner of Internal Revenue
Court of Appeals for the Fourth Circuit
Decided October 16, 1958No. 7676PublishedCited by 11 opinions
1Opinion of the Court
HAYNSWORTH, Circuit Judge.
There is abundant support for the Tax Court’s conclusion that the peti tioner’a payments to preferred stockholders in the years 1951 through 1953 were actually, as well as in form, dividends upon stock and not interest, and, therefore, were not deductible in computing taxable income.
The petitioner is a telephone company operating in Virginia and North Carolina, and is subject to regulation in both states. In 1949, the taxpayer was in need of additional funds with which to finance its expanding business. Its ratio of debt to net worth had grown beyond the limits…
2Cases cited4 opinions
- Commissioner of Int. Rev. v. Meridian & Thirteenth R. Co.Court of Appeals for the Seventh Circuit · 1942
- United States v. Title Guarantee & Trust Co.Court of Appeals for the Sixth Circuit · 1943
- Helvering v. Richmond, F. & P. R. Co.Court of Appeals for the Fourth Circuit · 1937
- Pacific Southwest R. Co. v. Commissioner of Internal Rev.Court of Appeals for the Ninth Circuit · 1942
3Cited by11 opinions
- Miele v. CommissionerUnited States Tax Court · 1971
- Milwaukee & Suburban Transport Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1960
- RC Owen Company v. United StatesUnited States Court of Claims · 1960
- Jones Valley Finance Co. v. TennilleAlabama Court of Appeals · 1959
- Jennings v. United StatesCourt of Appeals for the Seventh Circuit · 1959
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