Gerli & Co. v. Commissioner
United States Tax Court
Petitioner was parent of a foreign subsidiary. It filed an application for a favorable sec. 367, I.R.C. 1954, ruling that it could partake of the benefits of sec. 332 on its liquidation of this foreign subsidiary. A favorable ruling was issued. Included in the ruling, however, was the requirement that petitioner include in income as a dividend in the year of liquidation, the accumulated and current earnings and profits of its foreign subsidiary.
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Petitioner was parent of a foreign subsidiary. It filed an application for a favorable sec. 367, I.R.C. 1954, ruling that it could partake of the benefits of sec. 332 on its liquidation of this foreign subsidiary. A favorable ruling was issued. Included in the ruling, however, was the requirement that petitioner include in income as a dividend in the year of liquidation, the accumulated and current earnings and profits of its foreign subsidiary. Petitioner liquidated the subsidiary under sec. 332 but did not include any amount in income with respect to the subsidiary's earnings and profits.…
1Opinion of the Court
Sterrett, Judge:
By letter dated March 28, 1972, respondent determined a deficiency in income taxes due from petitioner Gerli & Co., Inc. (Gerli), and its subsidiaries, for their taxable year ended December 31, 1965, in the amount of $346,448.50. Gerli and its subsidiaries1 had filed as a consolidated group for that taxable year. Gerli is, therefore, for purposes of this case, the sole agent for the consolidated group and is authorized to act in its own name in all matters relating to the consolidated group’s tax liability for the taxable year before us. See sec. 1.1502-77(a), Income Tax Regs.…
2Cases cited14 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Jasionowski v. CommissionerUnited States Tax Court · 1976
- Estate of Horvath v. CommissionerUnited States Tax Court · 1973
- United States v. Hilton Hotels Corp.Supreme Court of the United States · 1970
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3Cited by9 opinions
- The El Paso Company, and El Paso Natural Gas Company v. The United StatesCourt of Appeals for the Federal Circuit · 1982
- Gerli & Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1982
- Pitcher v. CommissionerUnited States Tax Court · 1985
- Sherwood Properties v. CommissionerUnited States Tax Court · 1987
- Ebben v. CommissionerUnited States Tax Court · 1983
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