Estate of McWhorter v. Commissioner
United States Tax Court
On Aug. 28, 1970, Ozark declared dividends to shareholders of record on Sept. 30, 1970, payable Oct. 1, 1970. On Oct. 1, 1970, promissory notes with a face value equal to the declared dividends were issued to the shareholders. On Apr. 12, 1971, Ozark acquired 100 percent ownership in a previously unrelated corporation, Benton. On Apr. 30, 1971, Benton was merged into Ozark.
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On Aug. 28, 1970, Ozark declared dividends to shareholders of record on Sept. 30, 1970, payable Oct. 1, 1970. On Oct. 1, 1970, promissory notes with a face value equal to the declared dividends were issued to the shareholders. On Apr. 12, 1971, Ozark acquired 100 percent ownership in a previously unrelated corporation, Benton. On Apr. 30, 1971, Benton was merged into Ozark. Held, the property distributions occurred on Oct. 1, 1970; there were no earlier constructive distributions. Held, further: The purchase and liquidation of Benton did not qualify as one of the transactions described in…
1Opinion of the Court
Wiles, Judge:
Respondent determined the following deficiencies in petitioners’ income taxes:
Petitioner TYE— Amount
Estate of Ward T. McWhorter, docket No. 6653-742 . .12/31/70 $12,637.59
12/31/71 285.89
Ozark Supply Co., docket No. 6654-74 ..9/30/71 28,865.05
9/30/72 61,438.88
Clayton and Michael McWhorter, docket No. 6655-74 . .12/31/70 15,218.84
12/31/71 89.48
There are two issues remaining for our resolution. First, we must decide whether notes distributed by Ozark Supply Co. (hereinafter Ozark) to its shareholders on the first day following the termination of its subchapter S status, pursuant to…
2Cases cited22 opinions
- Anderson v. HelveringSupreme Court of the United States · 1940
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- United States v. KaiserSupreme Court of the United States · 1960
- J. E. Davant and Kathryn Davant v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. J. E. Davant and Kathryn DavantCourt of Appeals for the Fifth Circuit · 1966
17 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Superior Coach of Florida, Inc. v. CommissionerUnited States Tax Court · 1983
- Est. Of Ward McWhorter v. CirCourt of Appeals for the Eighth Circuit · 1978
- Estate of McWhorter v. CommissionerUnited States Tax Court · 1978
- Handke v. CommissionerUnited States Tax Court · 1990
- Superior Coach of Florida, Inc. v. CommissionerUnited States Tax Court · 1983