Estate of Munter v. Commissioner
United States Tax Court
Held: Recovery of previously expensed items in a liquidating sale is not protected from recognition by sec. 337. Therefore, the recovery is taxable under the tax benefit rule to the extent of the tax benefit, and petitioners are liable for the tax as transferees of the assets of the corporation.
1ConcurrenceTannenwald, J.
I agree with the result reached by the majority and append these comments for two reasons: (1) To attempt to eliminate some of the confusion which seems to me to have arisen due to the play on words in which the courts have engaged in their efforts to avoid what they considered to be the plain language of section 337 and (2) the possible conflict which might be thought to exist between the majority opinions in this case and in John T. Stewart III Trust, decided this day (63 T.C. 682).
The need to assess and collect taxes at fixed and relatively short intervals underpins the principle of…
2Cases cited42 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- United States v. Skelly Oil Co.Supreme Court of the United States · 1969
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