U.S. v. Kirby Lumber Co.

284 U.S. 1 (1931)


Kirby Lumber Company issued its own bonds for $12,126,800 for which it got par value. Later in the same year, it purchased some of its own bonds at less than par and realized a gain of $137,521.30 from the transactions. The IRS taxed the amount of the gain. Kirby paid the tax and then sued for a refund.