Commissioner v. Phipps’s Empirical Analysis

Citation profile

41 federal appellate · 12 district · 13 state decisions

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 109 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““(a) Definition of Dividend. — The term ‘dividend’ when used in this chapter * * * means any distribution made by a corporation to its shareholders, whether in money or in other property, (1) out of its earnings or profits accumulated after February 28, 1913, or (2) out of the earnings or profits of the taxable year (computed as of the close of the taxable year without diminution by reason of any distributions made during the taxable year), without regard to the amount of the earnings and profits at the time the distribution was made. “(b) Source of Distributions. — For the purposes of this chapter every distribution is made out of earniugs or profits to the extent thereof, and from the most recently accumulated earnings or profits. * * * # Sl¡ * * * “ (d) Other Distributions from Capital. ■ — If any distribution (not in partial or complete liquidation) made by a corporation to its shareholders is not out of increase in value of property accrued before March 1, 1913, and is not a dividend, then the amount of such distribution shall be applied against and reduce the adjusted basis of the stock provided in section 113, and if in excess of such basis, such excess shall be taxable in the same manner as a gain from the sale or exchange of property.””

   1 later decision quote this exact passage · from the majority
   e.g. United States v. Kavanagh

2. “A basic principle of the income tax laws has long been that corporate earnings and profits should be taxed when they are distributed to the stockholders who own the distributing corporation. * * * Thus unless those earnings and profits accumulated by the predecessor corporations and undistributed in this reorganization are deemed to have been acquired by the successor corporation and taxable upon distribution by it, they would escape the taxation which Congress intended. * * * * * * * * The congressional purpose to tax all stoekholdex’s who receive distributions of corporate earnings and profits cannot be frustrated by any reorganization which leaves earnings and profits undistributed in whole or in part.”

   1 later decision quote this exact passage · from the majority
   e.g. Bennett v. United States

3. ““And in the case of a reorganization or liquidation in the framework of the Code, the recognition of loss is deferred by Congressional mandate to a later time.” 336 U.S. at page 420 , 69 S.Ct. at page 621 . “Since we believe that to allow deduction from these earnings of the deficits of its subsidiaries would be in effect to recognize losses the tax effects of which Congress has explicitly provided should be deferred, the judgment of the Court of Appeals is reversed.” 336 U.S. at page 421 , 69 S.Ct. at page 622 .”

   1 later decision quote this exact passage · from the majority
   e.g. Stratton Grain Co. v. Reisimer