Berks Foundry & Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. Surplus of a corporation may not be reduced in determining the extent to which a dividend is paid from current earnings of a year by a "tentative tax" theoretically set aside out of such earnings pro rata over such year.
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1. Surplus of a corporation may not be reduced in determining the extent to which a dividend is paid from current earnings of a year by a "tentative tax" theoretically set aside out of such earnings pro rata over such year. Appeal of L. S. Ayers & Co.,1 B.T.A. 1135. 2. In determining invested capital for the calendar year 1919 the Commissioner correctly reduced surplus on account of the tax for the year 1919 prorated, and he also correctly excluded from surplus at the beginning of the year the amount of $6,650.05 representing additional tax for the year 1917.
1Opinion of the Court
BERKS FOUNDRY & MANUFACTURING CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Berks Foundry & Mfg. Co. v. Commissioner
Docket No. 6998.
United States Board of Tax Appeals
5 B.T.A. 756; 1926 BTA LEXIS 2798;
December 8, 1926, Promulgated
1. Surplus of a corporation may not be reduced in determining the extent to which a dividend is paid from current earnings of a year by a "tentative tax" theoretically set aside out of such earnings pro rata over such year. Appeal of L. S. Ayers & Co.,1 B.T.A. 1135.
2. In determining invested capital for the calendar year 1919 the Commissioner…
2Cases cited2 opinions
- L. S. Ayers & Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Berks Foundry & Manufacturing Co. v. CommissionerUnited States Board of Tax Appeals · 1926