Telephone Answering Service Co. v. Commissioner
United States Tax Court
TASCO owned 100 percent of the stock of both Houston and North American in addition to operating a telephone-answering service directly and providing managerial services to those two subsidiaries, which themselves operated telephone-answering services.
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TASCO owned 100 percent of the stock of both Houston and North American in addition to operating a telephone-answering service directly and providing managerial services to those two subsidiaries, which themselves operated telephone-answering services. After having been approached concerning the stock of Houston, TASCO on Mar. 18, 1966, created New TASCO as a wholly owned subsidiary and on May 13, 1966, adopted a plan of liquidation and approved the sale of the Houston stock. The sale was closed on Oct. 31, 1966. On Mar. 31, 1967, TASCO transferred all its assets excluding its North American…
1Dissent
Sterrett, J,
dissenting: As argued by the parties the issue presented to the Court is whether the sale in question was made pursuant to a plan of complete liquidation as contended by petitioner or was merely part of an integrated transaction constituting a reorganization as maintained by respondent.
Specifically respondent asserts that the entire transaction qualifies as a reorganization within the meaning of sections 368(a)(1)(D) and 354.1 I would hold otherwise on the grounds that the legislative history2 makes it quite clear that section 354(b) was not designed to cover divisive…
2Cases cited9 opinions
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Neil Rogen v. Ilikon CorporationCourt of Appeals for the First Circuit · 1966
- Commissioner of Internal Revenue v. Hyman H. Berghash and Rose Berghash, Commissioner of Internal Revenue v. Delavan-Bailey Drug Co., Inc.Court of Appeals for the Second Circuit · 1966
- Gallagher v. CommissionerUnited States Tax Court · 1962
- Berghash v. CommissionerUnited States Tax Court · 1965
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