J. E. Hawes Corp. v. Commissioner
United States Tax Court
In the taxable year 1960 the petitioner, pursuant to a plan of complete liquidation, sold its notes and accounts receivable at an amount equal to face value less the balance contained in its reserve for bad debts. Held, that upon the cessation in 1960 of the necessity for maintaining the reserve for bad debts, the balance in such reserve constituted ordinary income to the petitioner.
1Opinion of the Court
OPINION
Atkins, Judge:
The respondent determined a deficiency in income tax for the taxable year 1960 in the amount of $79,895.26. The petitioner having conceded one of the issues, the only issue remaining is whether the respondent erred in determining that the balance in petitioner’s reserve for bad debts at the time in 1960 that the petitioner sold its assets, including its notes and accounts receivable, constituted ordinary income to the petitioner.
All the facts are stipulated and the stipulation is incorporated herein by reference.
The petitioner is an Illinois corporation founded in 1908…
2Cases cited18 opinions
- Geyer, Cornell & Newell, Inc. v. CommissionerUnited States Tax Court · 1946
- West Seattle National Bank of Seattle v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- McClain v. CommissionerSupreme Court of the United States · 1941
- West Seattle Nat'l Bank v. CommissionerUnited States Tax Court · 1959
- R. Gsell & Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1961
13 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Anders v. CommissionerUnited States Tax Court · 1967
- Bird Management, Inc. v. CommissionerUnited States Tax Court · 1967
- Argus, Inc. v. CommissionerUnited States Tax Court · 1965
- Dodson v. CommissionerUnited States Tax Court · 1969
15 more not listed; retrieve them via the Exa API.