Segel v. Commissioner
United States Tax Court
Ps owned 100 percent of the stock of A, a subch. S corporation. From time to time after the initial incorporation, Ps made payments to A in accordance with their proportionate stock interests. The payments were not evidenced by any written agreement, were not secured, were not repayable at any specific date or dates, and were not transferred under any understanding to pay interest. No interest in fact was ever paid on the payments.
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Ps owned 100 percent of the stock of A, a subch. S corporation. From time to time after the initial incorporation, Ps made payments to A in accordance with their proportionate stock interests. The payments were not evidenced by any written agreement, were not secured, were not repayable at any specific date or dates, and were not transferred under any understanding to pay interest. No interest in fact was ever paid on the payments. The payments were denominated as "Loans from Shareholders" in filings with the State and Federal tax authorities and in the corporation's general accounting…
1Opinion of the Court
WELLS, Judge-.
By statutory notices of deficiency, respondent determined deficiencies in petitioners’ income taxes for the taxable years as follows:
Docket no. Petitioner Year Deficiency
14330-85 Joseph M. and Doris G. Segel 1972 1974 1975 1977 1978 $29,363.00 171,562.00 40,570.00 56,080.00 5,832.00
17211-85 Alan J. Segel 1972 1973 1975 1978 7,497.55 17,238.73 5,677.00 22,082.00
17212-85 Marvin L. Segel Marvin L. and Rhonda P. Segel2 1972 1974 1975 1977 1978 3,172.52 30,371.00 9,526.00 1,550.00 57,234.00
17213-85 Fannie B. Segel 1975 1977 1978 19793 67.00 310.00 11,119.00 31.00
17214-85 Michael D.…
2Cases cited33 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
28 more not listed; retrieve them via the Exa API.
3Cited by75 opinions
- Recklitis v. CommissionerUnited States Tax Court · 1988
- Calumet Industries, Inc. v. CommissionerUnited States Tax Court · 1990
- Kean v. CommissionerUnited States Tax Court · 1988
- Gantner v. CommissionerUnited States Tax Court · 1988
- American Offshore, Inc. v. CommissionerUnited States Tax Court · 1991
70 more not listed; retrieve them via the Exa API.