Wales v. Commissioner
United States Tax Court
The filing of a statement of intent to dissolve in compliance with Colorado statutes by the sole corporate shareholders was tantamount to the adoption of a plan of liquidation by the corporation within the meaning of sec. 333, I.R.C. 1954. Therefore, the attempted elections of the shareholders under said sec. 333 (which they now seek to avoid) were out of time and ineffective.
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The filing of a statement of intent to dissolve in compliance with Colorado statutes by the sole corporate shareholders was tantamount to the adoption of a plan of liquidation by the corporation within the meaning of sec. 333, I.R.C. 1954. Therefore, the attempted elections of the shareholders under said sec. 333 (which they now seek to avoid) were out of time and ineffective. Shull v. Commissioner, 291 F. 2d 680 (C.A. 4, 1961), reversing Frank T. Shull, 34 T.C. 533 (1960), followed.
1Opinion of the Court
FoekesteR, Judge:
Respondent has determined deficiencies in petitioners’ income tax returns for the calendar years 1960 and 1961 in the following amounts:
Year Deficiency
1960 _$5,244.30
1961_ 33,621. 60
Only the year 1961 is now before us, as petitioners have conceded all issues relating to 1960 and have deposited the entire amount determined with respondent.
Some concessions have been made as to 1961, and the only question now remaining is whether petitioners have shown their election to liquidate their wholly owned corporation under section 3331 of the Internal Revenue Code to be invalid.
It is…
2Cases cited7 opinions
- Mountain Water Co. v. CommissionerUnited States Tax Court · 1960
- Alameda Realty Corp. v. CommissionerUnited States Tax Court · 1964
- International Inv. Corp. v. CommissionerUnited States Tax Court · 1948
- Roach v. CommissionerUnited States Tax Court · 1945
- Frank T. Shull and Ann R. Shull v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1961
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Lake Iola Groves, Inc. v. CommissionerUnited States Tax Court · 1984
- Wales v. CommissionerUnited States Tax Court · 1968