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46 B.T.A. 385

Chaplin v. Commissioner

United States Board of Tax Appeals

Decided February 24, 1942

United States Board of Tax Appeals · decided 1942-02-24

Certificates for common stock of a corporation were issued in the name of petitioner and delivered to an escrow agent under an agreement providing that when certain photoplays were delivered to the… Held: further, that the amounts accumulated in earlier years and paid over to petitioner in the taxable year are dividends rather than ordinary income.

Relies on Bonham v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1942-02-24

How this case has been cited

Cited by 3 later decisions — most recently February 1977

101942195019601970decided

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.

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Leech,

¶1dissenting: I think the two basic holdings in the majority opinion, expressed in the headnote, are inconsistent with each other and are both wrong. In my judgment, the stock in United Artists Corporation was intended to be and was received by the petitioner in 1919 when it was issued in the name of petitioner and delivered to the escrow agent. The stock was held by the escrow agent merely to guarantee performance of petitioner’s contract to deliver pictures. The dividends declared and paid on this stock were taxable to petitioner as such when received by the escrow agent. See Bonham v. Commissioner, 89 Fed. (2d) 725, affirming 33 B. T. A. 1100.

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