Commissioner of Internal Revenue v. Hartfield. Commissioner of Internal Revenue v. Healy

BRENNAN, District Judge.

This appeal questions the taxable status of the alleged overpayment by the taxpayers of income tax for the calendar year 1945. The facts are not complicated; the. issue of law is concise.

At the times pertinent here, George W.. Hartfield and Edwin E. Healy were officers, of the Hartfield-Healy Supply Company,. Inc., a New York corporation, and eacE was the owner of twenty-five of the fifty-two outstanding shares of stock. In 1945. the corporation was insolvent. During that, year there was paid by the corporation, as salary to each of the above named officers the sum of…