May v. Commissioner
United States Board of Tax Appeals
A corporation exchanged most of its assets for cash and stock of another corporation and pursuant to a plan of complete liquidation distributed assets to its stockholders in liquidation of its capital stock. A fund left for the payment of creditors was dissipated so that the Federal income tax liability was never paid.
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A corporation exchanged most of its assets for cash and stock of another corporation and pursuant to a plan of complete liquidation distributed assets to its stockholders in liquidation of its capital stock. A fund left for the payment of creditors was dissipated so that the Federal income tax liability was never paid. Held, that all stockholders receiving distributions in complete liquidation of their stock are liable as transferees of the corporation, since a stockholder is not entitled to receive in such complete liquidation any assets of a corporation until all of its obligations to…
1Opinion of the Court
*89OPINION.
Aeundell:
The two issues involved here are (1) whether the petitioners are liable as transferees of the French Dry Cleaning Co. under section 311 of the Kevenue Act of 1928, and (2) the value of the stock of the Atlanta Laundries, Inc., which was distributed to petitioners as stockholders of the French Dry Cleaning Co. In a prior proceeding before this Board a deficiency in income tax for the year 1928 was determined against the French Dry Cleaning Co. in the amount/ of $12,299.11, arising out of its profit from the exchange of almost all of its assets for cash and stock in the Atlanta…
2Cases cited10 opinions
- Sanger v. UptonSupreme Court of the United States · 1875
- Wood v. DummerU.S. Circuit Court for the District of Maine · 1824
- Hospes v. Northwestern Manuf'g & Car Co.Supreme Court of Minnesota · 1892
- McDonald v. WilliamsSupreme Court of the United States · 1899
- Hightower v. ThorntonSupreme Court of Georgia · 1850
5 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Borall Corp. v. CommissionerUnited States Tax Court · 1946
- Botz v. CommissionerUnited States Board of Tax Appeals · 1941
- Commercial Finance Co. v. CommissionerUnited States Tax Court · 1968
- Gottlieb v. CommissionerUnited States Tax Court · 1953
- Harris v. CommissionerUnited States Board of Tax Appeals · 1941
4 more not listed; retrieve them via the Exa API.