Owens v. Commissioner
United States Tax Court
Held, petitioner's sale in 1965 of all of his stock in his wholly owned subch. S corporation was not a bona fide arm's-length transaction and petitioner is taxable on the undistributed subch.
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Held, petitioner's sale in 1965 of all of his stock in his wholly owned subch. S corporation was not a bona fide arm's-length transaction and petitioner is taxable on the undistributed subch. S income of the corporation in the taxable year of sale; held, further, petitioner has not overcome respondent's prima facie case that he is a transferee within the meaning of sec. 6901, I.R.C. 1954, and thus is liable for any deficiency in income tax of the corporation for its 1964 taxable year, when it was not a subch. S corporation; held, further, the major portion of payments made by the corporation…
1Opinion of the Court
Tannenwald, Judge:
In these consolidated proceedings, respondent determined the following deficiencies in income tax:
Petitioners Docket No. Year Deficiency
E. Keith Owens (transferee)_ 1947-70 1964 $103,601.41
E. Keith Owens and Sharon E. Owens_ 1988-70 1965 78,443.00
In docket No. 1947-70, the issues are (1) whether petitioner E. Keith Owens is a transferee of Mid-Western Investment Corp. under section 69011 so as to be liable for any deficiency determined in such corporation’s 1964 corporate income tax and (2) whether the corporation is entitled to a deduction of $200,068.18 for feed…
2Cases cited28 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Griffiths v. CommissionerSupreme Court of the United States · 1939
23 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- E. Keith Owens v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1977
- Packard v. CommissionerUnited States Tax Court · 1985
- Keller v. CommissionerUnited States Tax Court · 1982
- Esmark, Inc. v. CommissionerUnited States Tax Court · 1988
- Stephen A. Keller and Ethel L. Keller v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1984
33 more not listed; retrieve them via the Exa API.