Las Cruces Oil Co. v. Commissioner
United States Tax Court
The assets of two partnerships engaged in selling petroleum and related products were transferred to petitioner in a transaction meeting the requirements of sec. 351, I.R.C. 1954. The final returns of the partnerships erroneously omitted portions of their closing inventories.
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The assets of two partnerships engaged in selling petroleum and related products were transferred to petitioner in a transaction meeting the requirements of sec. 351, I.R.C. 1954. The final returns of the partnerships erroneously omitted portions of their closing inventories. Held, under sec. 362(a)(1), I.R.C. 1954, petitioner is entitled to use as its basis for its opening inventory the actual amounts of inventory on hand, unadjusted for the errors in the partnerships' final returns.
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined deficiencies and additions to tax with respect to petitioner’s Federal income taxes for the fiscal years ending June 30,1969, and June 30, 1970, in the following amounts:
Addition to tax (ate. 6S5S(a), Year Deficiency I.B.C. 105,1)
1969___ $12,199.06 $609.96
1970...... 5,652.17 282. 61
The only issue is whether, under section 362(a) (l),1 a corporation to which assets were transferred tax-free under section 351 takes as its basis for its opening inventory the erroneous total of the closing inventories shown on its predecessors’ final returns or the…
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- Commissioner v. Gooch Milling & Elevator Co.Supreme Court of the United States · 1944
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Mayfair Minerals, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1972
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