Johnson v. Commissioner
United States Tax Court
Petitioners and their children were the only shareholders of a "subchapter S corporation." The corporation distributed cash to the shareholders disproportionately to their stock ownership. Petitioners, on their income tax returns, allocated the dividends differently than they were actually distributed, relying upon sec. 1.1375-3(d), Income Tax Regs.Held: Sec. 1.1375-3(d), Income Tax Regs., is derived from sec. 1375(c), I.R.C. 1954, as amended.
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Petitioners and their children were the only shareholders of a "subchapter S corporation." The corporation distributed cash to the shareholders disproportionately to their stock ownership. Petitioners, on their income tax returns, allocated the dividends differently than they were actually distributed, relying upon sec. 1.1375-3(d), Income Tax Regs.Held: Sec. 1.1375-3(d), Income Tax Regs., is derived from sec. 1375(c), I.R.C. 1954, as amended. Sec. 1375(c), like sec. 482, I.R.C. 1954, may be invoked and applied only by the Internal Revenue Service and not by a taxpayer.
1Opinion of the Court
Richard L. Johnson and Ruth W. Johnson, Petitioners v. Commissioner of Internal Revenue, Respondent
Johnson v. Commissioner
Docket No. 15104-80
United States Tax Court
77 T.C. 837; 1981 U.S. Tax Ct. LEXIS 46;
October 13, 1981, Filed
Decision will be entered for the respondent.
Petitioners and their children were the only shareholders of a "subchapter S corporation." The corporation distributed cash to the shareholders disproportionately to their stock ownership. Petitioners, on their income tax returns, allocated the dividends differently than they were actually distributed, relying upon sec.…
2Cases cited3 opinions
- Interstate Fire Insurance Company v. United StatesDistrict Court, E.D. Tennessee · 1963
- Morton-Norwich Products, Inc. v. United StatesUnited States Court of Claims · 1979
- Johnson v. CommissionerUnited States Tax Court · 1981