Legal Opinion

Mason v. Commissioner

United States Tax Court

Decided July 17, 1944No. Docket No. 1573PublishedCited by 11 opinions

Petitioner was a stockholder of X corporation. In 1938 the stockholders of X adopted in good faith a plan for X's complete liquidation, to be completed not later than December 31, 1941. X's financial condition was such that a speedy liquidation was reasonably to be anticipated. In September 1940 respondent asserted a claim against X in the approximate amount of the value of its assets held by its liquidating agent.

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Petitioner was a stockholder of X corporation. In 1938 the stockholders of X adopted in good faith a plan for X's complete liquidation, to be completed not later than December 31, 1941. X's financial condition was such that a speedy liquidation was reasonably to be anticipated. In September 1940 respondent asserted a claim against X in the approximate amount of the value of its assets held by its liquidating agent. In May 1942 this claim was settled for approximately one-third of the amount originally claimed and six months after the settlement the liquidation of X was completed. During the…

1Opinion of the Court

OPINION.

Kern, Judge:

The question here before us is one which was stated in Amory L. Haskell, 46 B. T. A. 164, 176; affd., 133 Fed. (2d) 202; but, in view of our holding on another issue, it required no answer. It is whether a plan of complete liquidation which calls for its execution within the time prescribed by section 115 (c), Revenue Act of 1938,1 but which is not executed within that time, can be, under any circumstances, a “complete liquidation” within the meaning of that section.

It should be noted that section 115 (c) defines “complete liquidation” for the purposes of that section as…

2Cases cited1 opinion

  1. Faulkner v. CommissionerUnited States Tax Court · 1944

3Cited by11 opinions

  1. Chick v. CommissionerUnited States Tax Court · 1946
  2. Cherry-Burrell Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1966
  3. Faulkner v. CommissionerUnited States Tax Court · 1944
  4. Kraus Trust v. CommissionerUnited States Tax Court · 1946
  5. Burnside Veneer Co. v. CommissionerUnited States Tax Court · 1947

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