United States Supreme Court Cases & Opinions

U.S. Supreme Court

Avery v. Commissioner, 292 U.S. 210 (1934)

Avery v. Commissioner

Nos. 791 and 792

Argued April 5, 1934

Decided April 30, 1934

292 U.S. 210

Syllabus

Where dividends were declared payable on or before December 31st, but, pursuant to the invariable practice and the purpose of the corporation, were paid by checks so transmitted that they did not and could not reach the shareholders until the first business day in January of the following calendar year, held:

1. That, within the intendment of § 213(a) of the Revenue Act of 1924 and like provisions of the Act of 1928, such dividends were " received " in the calendar years in which the checks were received. P. 292 U. S. 214.

Page 292 U. S. 211

2. They were not, on December 31, preceding, "cash or other property unqualifiedly made subject" to the shareholder's demands within the meaning of Treasury Regulations 65, Art. 1541. Id.

67 F.2d 310 reversed.

Certiorari, 291 U.S. 657, to review the affirmance of an order of the Board of Tax Appeals, decision unreported, which sustained deficiency assessments of income taxes.