Pierce v. Commissioner
United States Tax Court
Petitioner husband, one of two 50-percent shareholders of a California corporation, received numerous advances from the corporation throughout the years 1962 through 1967. Held, on the facts, the advances were bona fide loans and not constructive dividends.
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Petitioner husband, one of two 50-percent shareholders of a California corporation, received numerous advances from the corporation throughout the years 1962 through 1967. Held, on the facts, the advances were bona fide loans and not constructive dividends. Held, further, that petitioner husband's promise to repay the sums advanced constituted fair consideration under the Uniform Fraudulent Conveyance Act as adopted by California, so that petitioner husband was not responsible as a transferee for corporate tax obligations.
1Opinion of the Court
Hall, Judge:
In these cases respondent determined (a) deficiencies in petitioners’ income taxes and (b) liabilities owed by petitioner James K. Pierce as transferee of California Business Service <& Audit Co., as follows:
Jambs K. and Madeline F. Pierce, docket Nos. 5660-69 and 3460-69
Year Deficiency Overassessment
1962_ $84, 665. 53
1963_ 45, 619. 64
1964_ 98, 928. 28
1965_ 36, 378. 80
1966_^_ $18, 255. 42
1967___ 54,406.46
Total__319,998.71 18,255.42
James K. Pierce, Transferee, docket No. 1933-69
Year Transferor's deficiency Sec. 6668(a) penalty
1962_ $37, 398. 28 $1, 869. 91
1963_ 2, 340. 08
1964_…
2Cases cited29 opinions
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- Blair v. PitchessCalifornia Supreme Court · 1971
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Randone v. Appellate DepartmentCalifornia Supreme Court · 1971
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