Rafferty v. Comptroller of the Treasury

These appeals present a question as to whether the receipt by stockholders of payments made in liquidation of a domestic or foreign corporation are taxable as income under the provisions of the state income tax laws. 1

The assessed taxpayers are all residents of Maryland. The dissolved corporation was the Monumental Radio Corporation. It had been incorporated under the laws of Maryland on July 12, 1926, and from that date until 1956, it had engaged in the business of operating a radio station in Baltimore.

When the plan of liquidation recommended by the board of directors and approved by the…