Baird v. Commissioner
United States Tax Court
Prior to and during the taxable years 1947 to 1951, inclusive, petitioners William C. Baird and Harold J. Baird, as officers and minority shareholders of a family-owned corporation, withdrew large sums of corporate funds for their personal use, which were entered on the corporate books as accounts and notes receivable, but for which no notes were executed until after the revenue agent investigated the character of the alleged "loans."
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Prior to and during the taxable years 1947 to 1951, inclusive, petitioners William C. Baird and Harold J. Baird, as officers and minority shareholders of a family-owned corporation, withdrew large sums of corporate funds for their personal use, which were entered on the corporate books as accounts and notes receivable, but for which no notes were executed until after the revenue agent investigated the character of the alleged "loans." While their wives were nominal officers and owned all of the corporate stock, except two shares held by the husbands, the latter had virtually complete control…
1Opinion of the Court
OPINION.
Fisher, Judge:
The principal issue presented for decision is whether the withdrawals by petitioners William C. Baird and Harold J. Baird from their family-owned corporation, of which they were officers and stockholders in the years prior to 1951, constituted a disguised distribution of dividends taxable to them as income for the years involved herein, as determined by respondent, or were bona fide loans, as contended by petitioners.
We are of the opinion, upon consideration of the entire record, that the withdrawals in question by the Baird brothers, respectively, in excess of salary…
2Cases cited6 opinions
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- United Mercantile Agencies, Inc. v. CommissionerUnited States Tax Court · 1955
- Wilson v. CommissionerUnited States Tax Court · 1948
- Regensburg v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1944
- Lincoln Nat. Bank v. BurnetCourt of Appeals for the D.C. Circuit · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by95 opinions
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Alterman Foods, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1975
- Boulware v. United StatesSupreme Court of the United States · 2008
- Montgomery Coca-Cola Bottling Co. v. United StatesUnited States Court of Claims · 1980
- Dean v. CommissionerUnited States Tax Court · 1971
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