Humpage v. Commissioner
United States Tax Court
Effect of Reorganization on Earnings. -- Accumulated earnings of a corporation do not survive a section 77B reorganization whereby the assets are acquired by a new corporation whose stock is acquired by creditors of the old corporation to the exclusion of stockholders. Commissioner v. Sansome, 60 F. 2d 931, is not applicable to a section 77B reorganization.
1Opinion of the Court
OPINION.
ARUndell, Judge:
The question for decision is whether the distributions received by the petitioners in 1940 from Carl G. Fisher Corporation constituted taxable dividends. The answer to this question depends upon whether or not the corporation had available earnings or profits at the time of the distribution. This in turn depends upon whether or not the accumulated earnings and profits of the predecessor, Fisher Company, were acquired as such by Fisher Corporation in the section 77B reorganization that was completed in 1935. If they were so acquired, there is a further question as to…
2Cases cited7 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Helvering v. Cement Investors, Inc.Supreme Court of the United States · 1942
- Commissioner of Internal Revenue v. SansomeCourt of Appeals for the Second Circuit · 1932
- Commissioner v. PhippsSupreme Court of the United States · 1949
- Canal & Banking Co. v. New OrleansSupreme Court of the United States · 1879
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- United States v. Charles KavanaghCourt of Appeals for the Eighth Circuit · 1962
- John E. McCullough and Esther D. McCullough v. The United StatesUnited States Court of Claims · 1965
- Dunning v. United StatesDistrict Court, W.D. Missouri · 1964
- Humpage v. CommissionerUnited States Tax Court · 1952