Foglesong v. Commissioner
United States Tax Court
P is the controlling shareholder and sole income-generating employee of a personal service corporation, C. P organized C for the purposes of splitting his income between himself and C, to limit his liability, and to diversify his business. Our prior opinion in this matter, T.C.
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P is the controlling shareholder and sole income-generating employee of a personal service corporation, C. P organized C for the purposes of splitting his income between himself and C, to limit his liability, and to diversify his business. Our prior opinion in this matter, T.C. Memo. 1976-294, holding that income was taxable to P under sec. 61, I.R.C. 1954, was reversed on appeal and remanded for reconsideration under sec. 482, I.R.C. 1954. Held, sec. 482 may be employed to allocate income between a corporation and its controlling shareholder/employee where financial relations between them…
1Opinion of the Court
OPINION
Forrester, Judge.
This matter comes before the Court on remand from the Seventh Circuit Court of Appeals, Foglesong v. Commissioner, 621 F.2d 865 (1980), revg. and remanding T.C. Memo. 1976-294. The facts were set forth in detail in our prior opinion and were not disturbed on appeal. No new evidence has been offered on the issues to be decided herein; thus, we shall not reiterate facts previously found.
In our earlier opinion, we held that Frederick H. Foglesong (hereinafter petitioner) so controlled and directed the earning of the income of Frederick H. Foglesong Co., Inc. (hereinafter…
2Cases cited11 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Primuth v. CommissionerUnited States Tax Court · 1970
- Achiro v. CommissionerUnited States Tax Court · 1981
- American Sav. Bank v. CommissionerUnited States Tax Court · 1971
- Keller v. CommissionerUnited States Tax Court · 1981
6 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Haag v. CommissionerUnited States Tax Court · 1987
- Johnson v. CommissionerUnited States Tax Court · 1982
- Pacella v. CommissionerUnited States Tax Court · 1982
- Eli Lilly & Co. v. CommissionerUnited States Tax Court · 1985
- Dolese v. CommissionerUnited States Tax Court · 1984
21 more not listed; retrieve them via the Exa API.