Seiberling Rubber Co. v. Commissioner of Internal Rev.

I am of the opinion that the transaction in 1934 was not one within the provisions of Sections 112(b) (3), 112(b) (4) or 112(b) (5) of the Revenue Act of 1932, which is the applicable statute.

'Both Sections 112(b) (3) and 112(b) (4) require that there be a “reorganization” in order for the provisions thereof to be applicable. The transaction does not qualify as a “reorganization” under Section 112(d) of the Act, in that neither the old corporation nor its stockholders were, immediately after the transfer, in control of the new corporation to which the assets were transferred. The creditors of…