Adams v. Commissioner
United States Tax Court
On May 30, 1978, our findings of fact and an opinion were filed in this case (70 T.C. 373 (1978)), which, in part, sustained respondent's determination that petitioner was subject to a 5-percent excise tax, individually and as transferee of Automatic Accounting Co., under sec. 4941(a)(1), I.R.C. 1954, for certain acts of self-dealing which occurred between a private foundation and petitioner and Automatic Accounting Co. With respect to the same acts of self-dealing,…
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On May 30, 1978, our findings of fact and an opinion were filed in this case (70 T.C. 373 (1978)), which, in part, sustained respondent's determination that petitioner was subject to a 5-percent excise tax, individually and as transferee of Automatic Accounting Co., under sec. 4941(a)(1), I.R.C. 1954, for certain acts of self-dealing which occurred between a private foundation and petitioner and Automatic Accounting Co. With respect to the same acts of self-dealing, respondent also asserted deficiencies in tax under sec. 4941(b)(1). The above-noted opinion did not address petitioner's…
1ConcurrenceGoffe, J.
In view of the impact of our decision, I feel compelled to comment briefly upon what I believe to be the primary problem in applying the statute as written.
The principal means by which Congress has chosen to eliminate transactions between private foundations and disqualified persons is through the imposition of the second-level tax. In this connection, the clear intent of Congress reflected in the language of section 4941(b)(1) and in the accompanying legislative history, is to condition a self-dealer’s liability for the second-level tax upon his failure to undertake corrective action within…
2Cases cited10 opinions
- Washington-Southern Navigation Co. v. Baltimore & Philadelphia Steamboat Co.Supreme Court of the United States · 1924
- Concord Casualty & Surety Co. v. United StatesCourt of Appeals for the Second Circuit · 1934
- Louisville Builders Supply Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1961
- Commissioner of Internal Revenue v. Smith Paper, Inc.Court of Appeals for the First Circuit · 1955
- Graf v. United StatesUnited States Court of Claims · 1938
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