Bercy Industries, Inc. v. Commissioner
United States Tax Court
Petitioner, a wholly owned subsidiary of B, was a shell corporation with no business activity. Pursuant to a plan of reorganization, B transferred some of its voting common shares to petitioner and petitioner transferred said shares to the shareholders of T, a target corporation. All T stock was canceled and T merged into petitioner, petitioner receiving all T's assets and assuming its liabilities.
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Petitioner, a wholly owned subsidiary of B, was a shell corporation with no business activity. Pursuant to a plan of reorganization, B transferred some of its voting common shares to petitioner and petitioner transferred said shares to the shareholders of T, a target corporation. All T stock was canceled and T merged into petitioner, petitioner receiving all T's assets and assuming its liabilities. After the merger petitioner's business was a continuation of T's business and it incurred a net operating loss. Petitioner carried back net operating loss to the pre-reorganization taxable income…
1Opinion of the Court
Stbrrett, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes for its fiscal years ended May 25, 1968, and May 31, 1969, in the amounts of $18,786 and $367,638, respectively. Due to petitioner’s previous acceptance of many of respondent’s adjustments the remaining issue for decision is whether petitioner may carry back, under section 172, I.R.C. 1954, a post-reorganization net operating loss, for the short period April 23, 1970, through December 31, 1970, to the pre-reorganization income of an acquired corporation for its taxable years ended May 25,1968, and May…
2Cases cited16 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- King Enterprises, Inc. v. The United StatesUnited States Court of Claims · 1969
- Reef Corporation v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Reef CorporationCourt of Appeals for the Fifth Circuit · 1966
- Estate of Bernard H. Stauffer, Bonnie H. Stauffer v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1968
- Earl Vest and Fay Vest, Petitioners-Appellees-Cross v. Commissioner of Internal Revenue, Respondent-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
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3Cited by3 opinions
- Bercy Industries, Inc., and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Bercy Industries, Inc. v. CommissionerUnited States Tax Court · 1978
- Grove Equity v. CommissionerUnited States Tax Court · 1994