Doran v. Commissioner of Internal Revenue

246 F.2d 934 Thomas F. DORAN, Ethel M. Doran, Oney S. Riggs, Dorothy F. Riggs, Ida Bee MacDonald, Clara Nieman, Gus H. Nieman, and John W. MacDonald, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. No. 15250. United States Court of Appeals Ninth Circuit. July 9, 1957. Paine, Lowe, Coffin & Herman, Alan P. O'Kelly and R. E. Lowe, Spokane, Wash., for petitioners. Charles K. Rice, Asst. Atty. Gen., and Carolyn R. Just, John N. Stull, and S. Dee Hanson, Attorneys, Dept. of Justice, Washington, D. C., for respondent. Before LEMMON, FEE, and HAMLEY, Circuit Judges. HAMLEY, Circuit Judge. 1 The named petitioners seek reversal of eight decisions rendered by the Tax Court of the United States, in consolidated proceedings to redetermine tax deficiencies. 2 The question we must decide is this: Where, under the circumstances of this case, life insurance policies on the lives of corporate stockholders were issued to trustees, the premiums being paid by the corporation, and where the trustees received the proceeds of one policy and purchased stock belonging to the deceased for the surviving stockholders, did the surviving stockholders realize taxable income in the form of a…