Frank T. Shull and Ann R. Shull v. Commissioner of Internal Revenue

HAYNSWORTH, Circuit Judge.

The question is whether the taxpayers are bound by their election to have their gain upon the liquidation of a closely held corporation recognized and taxed pursuant to the provisions of § 112 (b)(7) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 112(b) (7). The taxpayers contend that the proceedings did not meet the requirements of § 112(b) (7), and that, in any event, their election was filed under a mistake of material fact.

The taxpayers were the owners of all of tl\-e outstanding stock of Shull Electric Products Corporation, a corporation organized under the…