Hedges v. Commissioner
United States Tax Court
Income -- Trust -- Fiduciary -- Beneficiaries -- Delayed Receipt -- Sections 142, 161, 162. -- A fiduciary held stock in his own name which he failed to disclose and have distributed to the beneficiaries as an asset of the estate of a decedent to which it belonged and which he was administering. The heirs were unaware that he held the stock.
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Income -- Trust -- Fiduciary -- Beneficiaries -- Delayed Receipt -- Sections 142, 161, 162. -- A fiduciary held stock in his own name which he failed to disclose and have distributed to the beneficiaries as an asset of the estate of a decedent to which it belonged and which he was administering. The heirs were unaware that he held the stock. The fiduciary continued to hold the stock and received dividends on it as a fiduciary and was liable for tax on the dividends so that when the stock and dividends were later turned over to the heirs they were not taxable in the year of receipt on the…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner argues that John properly reported the dividends since he received them under color of title and claim of right; they were not taxable to a trust ex maleficio or any other trust recognized as a taxpayer; and the petitioners are taxable in 1944 with the $57,439 which they received, not as heirs of Kittie, but as creditors of John’s estate under a claim, the gravamen of which was loss of profits, since under no sound theory could the dividends have been reported by or for them in the years of payment by the corporation. The petitioners argue that the…
2Cases cited10 opinions
- Williams v. CommissionerUnited States Tax Court · 1951
- Swastika Oil & Gas Co. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1941
- Chick v. CommissionerUnited States Tax Court · 1946
- Farrier v. CommissionerUnited States Tax Court · 1950
- Chick v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1948
5 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Commissioner v. HedgesCourt of Appeals for the Ninth Circuit · 1954
- Trounstine v. CommissionerUnited States Tax Court · 1952
- Commissioner of Internal Revenue v. Hedges. Commissioner of Internal Revenue v. ChildressCourt of Appeals for the Ninth Circuit · 1954
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
3 more not listed; retrieve them via the Exa API.