Mason v. Commissioner
United States Tax Court
P was the sole shareholder of A, an electing small business corporation under subch. S, I.R.C. 1954. In January 1967, A filed a voluntary petition in straight bankruptcy under chs. I-VII of the Bankruptcy Act. P filed a similar petition on Nov. 30, 1967. P claimed A's operating loss on his 1967 Federal income tax return.
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P was the sole shareholder of A, an electing small business corporation under subch. S, I.R.C. 1954. In January 1967, A filed a voluntary petition in straight bankruptcy under chs. I-VII of the Bankruptcy Act. P filed a similar petition on Nov. 30, 1967. P claimed A's operating loss on his 1967 Federal income tax return. The trustee in P's bankruptcy filed a petition with the bankruptcy court on Nov. 3, 1969, to abandon the stock of A. This petition was granted that same day. Held: Under bankruptcy law, the abandonment of worthless stock by the trustee was effective as of the day the petition…
1Opinion of the Court
Wilbur, Judge:
Respondent has determined the following deficiencies in petitioners’ Federal income tax:
Additions to tax Taxable years Deficiencies under sec. 6651(a)
1967. $19,087 $4,772
1968. 2,190 278
1969. 92 625
1970. 430 0
Certain issues having been conceded, the sole issue for decision is whether a voluntary petition filed by petitioner Dan E. Mason, under chapters I-VII of the Bankruptcy Act, terminated the subchapter S status of his wholly owned corporation.
FINDINGS OF FACT
All of the facts have been stipulated and are found accordingly.
Petitioners Dan E. and Beverly R. Mason, husband and…
2Cases cited13 opinions
- Segal v. RochelleSupreme Court of the United States · 1966
- Brown v. O'KEEFESupreme Court of the United States · 1937
- Rosenblum v. DingfelderCourt of Appeals for the Second Circuit · 1940
- Mueller v. CommissionerUnited States Tax Court · 1973
- Pottstown Iron Co. v. United StatesSupreme Court of the United States · 1931
8 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Dan E. Mason and Beverly R. Mason v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- American Nurseryman Publishing Co. v. CommissionerUnited States Tax Court · 1980
- Klein v. CommissionerUnited States Tax Court · 1980
- In Re NevinUnited States Bankruptcy Court, D. Hawaii · 1991
- Abdalla v. CommissionerUnited States Tax Court · 1978
5 more not listed; retrieve them via the Exa API.