Minton v. Commissioner

In this appeal from the Tax Court, Linda Minton argues that a transaction among her, her parents, and her brother, all of whom were shareholders of Long’s Preferred Products, Inc., created a second class of stock thereby terminating the company’s status as a small business corporation. The Tax Court determined that the transaction did not create a second class of stock, and the court sustained the deficiency assessed against Minton. We agree with the Tax Court’s determination and affirm its judgment.

I

A

Generally the income of a corporation is taxed twice, once at the corporate level and again…