Polan v. Wisconsin Department of Revenue

The Wisconsin Department of Revenue appeals from an order declaring that sec. 71.337(1), Stats. 1975 1 violates the constitutional rights of Jeanne F. Polan. 2 This statute provides that a gain or a loss by a liquidating corporation on the sale of its property is not recognized to the corporation for purposes of computing the Wisconsin franchise tax, to the extent that the gain or loss is participated in by Wisconsin resident shareholders. Taxpayer Polan is a nonresident shareholder of the corporation. The order reversed the decision of the Wisconsin Tax Appeals Commission which had affirmed…