Wetterau Grocer Co., Inc. v. Commissioner of Internal Revenue

GARDNER, Chief Judge.

This matter is before us on petition to review a decision of the Tax Court which sustained the Commissioner in his determination of a deficiency in taxpayer’s income for the years 1943 and 1944 in the amount of $6200.40.

Taxpayer is a corporation organized under the laws of the State of Missouri, where it is engaged in the wholesale grocery business. Its stock has at all times been closely held by the members of the Wetterau family. In 1924 if, paid a stock dividend to its common stockholders in the form of 500 shares of preferred stock having a par value of $100.00 a…