Penrod v. Commissioner
United States Tax Court
Ps and J owned stock in corporations which operated fast-food restaurants pursuant to franchise agreements with M Corp. J owned the majority of stock of such corporations and generally acted as the leader of the group in business matters. J and M Corp. negotiated an acquisition agreement under which M Corp. would issue unregistered common stock in exchange for the stock of corporations owned by J and Ps.
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Ps and J owned stock in corporations which operated fast-food restaurants pursuant to franchise agreements with M Corp. J owned the majority of stock of such corporations and generally acted as the leader of the group in business matters. J and M Corp. negotiated an acquisition agreement under which M Corp. would issue unregistered common stock in exchange for the stock of corporations owned by J and Ps. Such agreement was executed on May 15, 1975. In November 1975, Ps and J took steps to register the M Corp. stock received in the acquisition. In January 1976, Ps and J sold 90 percent of such…
1Opinion of the Court
SIMPSON, Judge:
The Commissioner determined deficiencies in the petitioners’ Federal income taxes as follows:
Petitioner Year Deficiency
Robert A. Penrod 1973 1974 1975 1976 1977 $7,669.92 11,133.58 482,808.43 149,896.00 13,174.00
Ronald L. Peeples and Carol A. Peeples 1975 63,904.30 1976 42,892.02 1977 4.00
Charles E. Penrod and Mary E. Penrod 1975 208,949.79 1976 99,417.33 1977 1,639.37
The issues for our decision are: (1) Whether the exchange of stock of corporations owned by the petitioners for stock of McDonald’s Corp. (McDonald’s) qualifies as a tax-deferred reorganization under section 368,…
2Cases cited29 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- LeTulle v. ScofieldSupreme Court of the United States · 1940
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3Cited by61 opinions
- Leonard Greene and Joyce Greene v. United StatesCourt of Appeals for the Second Circuit · 1994
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- Stobie Creek Investments, LLC v. United StatesUnited States Court of Federal Claims · 2008
- Commissioner of Revenue v. Comcast Corp.Massachusetts Supreme Judicial Court · 2009
- Estate of Durkin v. CommissionerUnited States Tax Court · 1992
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