Carriage Square, Inc. v. Commissioner
United States Tax Court
Petitioner was the only general partner of Sonoma and, as such, it provided all the services necessary for the conduct of the partnership business, contributed $ 556 to capital, assumed substantially all risk of loss, and utilized its business contacts in obtaining large loans required by the partnership business. Each of five trusts contributed $ 1,000 to Sonoma's capital in return for 18 percent each of its profits.
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Petitioner was the only general partner of Sonoma and, as such, it provided all the services necessary for the conduct of the partnership business, contributed $ 556 to capital, assumed substantially all risk of loss, and utilized its business contacts in obtaining large loans required by the partnership business. Each of five trusts contributed $ 1,000 to Sonoma's capital in return for 18 percent each of its profits. Sonoma was able to borrow, and did borrow, substantially all the capital it needed for the conduct of its business, because a nonpartner guaranteed its debts. Held, Sonoma was…
1Opinion of the Court
Forrester, JouLge:
Respondent has determined the following deficiencies in petitioner’s Federal income taxes:
Amount of
TYE Nov. 30— deficiency
1969.$5,525
1970. 66,381
1971.77,082
There are two issues for our decision: (1) Whether the consent agreement (Treasury Form 872-A) duly executed on behalf of petitioner validly extended the statute of limitations for the years in question pursuant to section 6501(c)(4);1 and (2) whether all of the income earned by a purported partnership of which petitioner was the only general partner should be included in petitioner’s gross income pursuant to section 61.
FI…
2Cases cited6 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- McManus v. CommissionerUnited States Tax Court · 1975
- Donald L. Evans and Joan Evans v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1971
- Evans v. CommissionerUnited States Tax Court · 1970
- Anna Poggetto and A. D. Poggetto v. United StatesCourt of Appeals for the Ninth Circuit · 1962
1 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Church of Scientology v. CommissionerUnited States Tax Court · 1984
- John A. Laney and Jeanine Laney v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1982
- Cirelli v. CommissionerUnited States Tax Court · 1984
- Gaudern v. CommissionerUnited States Tax Court · 1981
- Estate of Camara v. CommissionerUnited States Tax Court · 1988
12 more not listed; retrieve them via the Exa API.