Estate of Kirk v. Commissioner
United States Tax Court
On Nov. 11, 1972, and during its taxable year ended June 30, 1973, petitioner-husband's wholly owned subchapter S corporation made a cash distribution to him. On Nov. 14, 1972, petitioner-husband gave 5 percent of his stock to his wife, whose failure to file the necessary consent terminated the corporation's subchapter S election for the entire taxable year.
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On Nov. 11, 1972, and during its taxable year ended June 30, 1973, petitioner-husband's wholly owned subchapter S corporation made a cash distribution to him. On Nov. 14, 1972, petitioner-husband gave 5 percent of his stock to his wife, whose failure to file the necessary consent terminated the corporation's subchapter S election for the entire taxable year. Held, the distribution was not a distribution of previously taxed income and was includable in petitioners' gross income. Sec. 1.1375-4(a), Income Tax Regs., is valid.
1Opinion of the Court
Estate of Eugene Brooks Kirk, Deceased, Mary Ann Kirk, Executrix, and Mary Ann Kirk, Petitioners v. Commissioner of Internal Revenue, Respondent
Estate of Kirk v. Commissioner
Docket No. 1012-76
United States Tax Court
70 T.C. 771; 1978 U.S. Tax Ct. LEXIS 68;
August 25, 1978, Filed
Decision will be entered for the respondent.
On Nov. 11, 1972, and during its taxable year ended June 30, 1973, petitioner-husband's wholly owned subchapter S corporation made a cash distribution to him. On Nov. 14, 1972, petitioner-husband gave 5 percent of his stock to his wife, whose failure to file the necessary…
2Cases cited6 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Clark v. CommissionerUnited States Tax Court · 1972
- Marie L. Detreville v. United States of America, Marie L. Detreville v. United StatesCourt of Appeals for the Fourth Circuit · 1971
- McKelvy v. United StatesUnited States Court of Claims · 1973
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