Sam Simon v. Commissioner of Internal Revenue, Albert Simon v. Commissioner of Internal Revenue, Clara Simon v. Commissioner of Internal Revenue, Melvin Simon v. Commissioner of Internal Revenue’s Empirical Analysis
1957
Citation profile
38 federal appellate · 2 district · 1 state decisions
How this case has been cited
Cited by 72 later decisions — most recently September 2019 · most notably DiLeo v. Commissioner (1991), Sachs v. Commissioner (1960)
38 federal appellate · 2 district · 1 state decisions
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
Relationships
Applies 26 U.S.C. § 115
Relies on Hormel v. Helvering · Helvering v. Taylor · Helvering v. Horst · Burnet v. Wells · Bankers Pocahontas Coal Co. v. Burnet
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 72 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“The corporate distribution here was made with the knowledge of the stockholders and was acquiesced in by them. The corporation is liable for a substantial tax upon the diverted income it failed to report. Further tax will be collected from taxpayers under the constructive dividend theory. Fraudulent tax dealings should not be encouraged. Criminal penalties are provided for tax evasion, and fraud and delinquency penalties are assessed upon taxes due when the circumstances warrant. The Government should be allowed to collect all tax and penalties authorized by law, but it is not our function to expand tax liability to fields not covered by statute. We find nothing in the Tax Court's opinion to indicate that the diverted sums represented salary or any other recognized ordinary income. We believe that the only way that the diverted income already taxed to the corporation can be taxed to the individual taxpayers is by the treatment of such diversions as dividends and corporate distributions.”
3 later decisions quote this exact passage · from the majority“'does not relieve the taxpayer of the obligation to pay the tax in full when it falls due, and can not be interpreted as deferring taxpayer's duty to pay the tax promptly'”
3 later decisions quote this exact passage · from the majority““Courts have frequently, and apparently uniformly, held that where controlling stockholders divert corporate income to themselves, such diverted funds should be treated as constructive dividends.” (37 T.C. p. 13)”
2 later decisions quote this exact passage · from the majority
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.