Forrester v. Commissioner
United States Tax Court
Subchapter S -- Election of Small Business Corporation as to Taxable Status. -- Held, Apache Park Development Corp. was not entitled to be treated as a small business corporation under subchapter S, I.R.C. 1954, for the calendar year 1963, since no valid election was filed under sec. 1372(a) and (c)( 1), I.R.C. 1954. Stock of Apache issued to petitioner on Apr. 23, 1962, was the community property of petitioner and his then wife.
Read the full summary
Subchapter S -- Election of Small Business Corporation as to Taxable Status. -- Held, Apache Park Development Corp. was not entitled to be treated as a small business corporation under subchapter S, I.R.C. 1954, for the calendar year 1963, since no valid election was filed under sec. 1372(a) and (c)( 1), I.R.C. 1954. Stock of Apache issued to petitioner on Apr. 23, 1962, was the community property of petitioner and his then wife. Both spouses were required to file timely consents. The consent filed by petitioner's wife was not timely.
1Opinion of the Court
OPINION
Only one issue remains, namely, whether Apache, a “small business corporation” as that term is defined in section 1371(a), I.R.C. 1954, as amended, was a validly elected subchapter S corporation.2 The applicable provisions of sections 1371(b) and 1372, I.R.C. 1954, as amended, are in the margin.3 We must first determine whether the 15,500 shares of Apache stock acquired by petitioner on April 23, 1962, were the community property of petitioner and his then wife Bernice or the separate property of petitioner. If community, then Bernice was also a shareholder4 and, under section 1372(a),…
2Cases cited15 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Burnet v. HarmelSupreme Court of the United States · 1932
- Nichols v. CoolidgeSupreme Court of the United States · 1927
- Frentz v. CommissionerUnited States Tax Court · 1965
- Porter v. PorterArizona Supreme Court · 1948
10 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Dunn v. CommissionerUnited States Tax Court · 1978
- Kean v. CommissionerUnited States Tax Court · 1968
- Babst Services, Inc. v. CommissionerUnited States Tax Court · 1976
- Rowland v. United StatesDistrict Court, W.D. Arkansas · 1970
- Clemens v. CommissionerUnited States Tax Court · 1969
8 more not listed; retrieve them via the Exa API.