Graham v. Commissioner
United States Board of Tax Appeals
1. Receipt of assets belonging to a taxpayer by a trustee in liquidation does not establish individual transferee liability. 2. Stockholders of a corporation received a dividend of $700 per share at a date when the corporation was solvent and such distribution did not result in insolvency.
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1. Receipt of assets belonging to a taxpayer by a trustee in liquidation does not establish individual transferee liability. 2. Stockholders of a corporation received a dividend of $700 per share at a date when the corporation was solvent and such distribution did not result in insolvency. Held, that the stockholders are not liable under section 280 of the Revenue Act of 1926 for income taxes due from the corporation. 3. The statutory liability of California corporation stockholders is not such a liability as may be asserted under section 280 of the Revenue Act of 1926.
1Opinion of the Court
*302OPINION.
Lansdon:
The petitioner, W. L. Hodges, Trustee, is not a transferee within the meaning of section 280. He received assets amount*303ing to $115,358.87, as trustee in liquidation, and if any of the assets remained in his hands the respondent may proceed against them to satisfy liability of the taxpayer. Eeceipt of such assets as trustee, however, does not establish an individual liability. Nathan Rolnick, 20 B. T. A. 989; Lillian Burke, 21 B. T. A. 45; and Ezra Gould, 21 B. T. A. 824.
The respondent contends that he has established transferee liability by showing that each stockholder…
2Cases cited1 opinion
- McDonald v. WilliamsSupreme Court of the United States · 1899
3Cited by4 opinions
- Wright v. CommissionerUnited States Board of Tax Appeals · 1933
- Graham v. CommissionerUnited States Board of Tax Appeals · 1932
- May v. CommissionerUnited States Board of Tax Appeals · 1936
- Solbar Eastern Corp. v. CommissionerUnited States Tax Court · 1975