Estate of Kirk v. Commissioner
United States Tax Court
On Nov. 11, 1972, and during its taxable year ended June 30, 1973, petitioner-husband's wholly owned subchapter S corporation made a cash distribution to him. On Nov. 14, 1972, petitioner-husband gave 5 percent of his stock to his wife, whose failure to file the necessary consent terminated the corporation's subchapter S election for the entire taxable year.
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On Nov. 11, 1972, and during its taxable year ended June 30, 1973, petitioner-husband's wholly owned subchapter S corporation made a cash distribution to him. On Nov. 14, 1972, petitioner-husband gave 5 percent of his stock to his wife, whose failure to file the necessary consent terminated the corporation's subchapter S election for the entire taxable year. Held, the distribution was not a distribution of previously taxed income and was includable in petitioners' gross income. Sec. 1.1375-4(a), Income Tax Regs., is valid.
1Opinion of the Court
Hall, Judge:
Respondent determined a deficiency of $3,792.39 in Eugene and Mary Kirk’s income tax for 1972. Eugene Kirk died on October 4,1976, and pursuant to an order of this Court dated September 13,1977, his estate was substituted as a party. The sole issue for decision is whether a distribution of $7,157.03 by Music City Songcrafters, Inc., to Eugene Kirk on November 11, 1972, was taxable to him. That corporation’s subchapter S election was terminated during the corporation’s taxable year ended June 30,1973.
OPINION
All of the facts have been stipulated by the parties and are found…
2Cases cited5 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Clark v. CommissionerUnited States Tax Court · 1972
- Marie L. Detreville v. United States of America, Marie L. Detreville v. United StatesCourt of Appeals for the Fourth Circuit · 1971
- McKelvy v. United StatesUnited States Court of Claims · 1973
3Cited by5 opinions
- Moser v. CommissionerUnited States Tax Court · 1989
- Estate of Eugene Brooks Kirk, Deceased Mary Ann Kirk, and Mary Ann Kirk v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1980
- Oswald v. CommissionerUnited States Tax Court · 1987
- Estate of Kirk v. CommissionerUnited States Tax Court · 1978
- Prescott v. CommissionerUnited States Tax Court · 1983