Fairfax Auto Parts, Inc. v. Commissioner
United States Tax Court
William Herbert owned all of the stock of petitioner, Fairfax Auto Parts, Inc., and 55 percent of the outstanding stock of petitioner, Fairfax Auto Parts of Northern Virginia, Inc. The remaining stock of Fairfax Auto Parts of NorthernVirginia was owned by Joseph Ofano.
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William Herbert owned all of the stock of petitioner, Fairfax Auto Parts, Inc., and 55 percent of the outstanding stock of petitioner, Fairfax Auto Parts of Northern Virginia, Inc. The remaining stock of Fairfax Auto Parts of NorthernVirginia was owned by Joseph Ofano. Held, for a person's stock ownership to be taken into account in determining whether the ownership tests of sec. 1563(a)(2) have been satisfied, that person must own stock in each member of the controlled group. Held, further, since the 80-percent test has not been satisfied, petitioners do not constitute a brother-sister…
1Opinion of the Court
OPINION
Sterrett, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Docket No.
1458-74 Fairfax Auto Parts of Northern Virginia, Inc_ 1971 $3,250
1972 3,250
1459-74 Fairfax Auto Parts, Inc_ 1971 3,250
1972 3,250
The deficiencies are based solely upon the disallowance by respondent of a full $25,000 surtax exemption to each petitioner during each of the taxable years at issue pursuant to section 1561, I.R.C. 1954,2 as in effect for those years. The only issue for our decision is whether petitioners were component members of a controlled group thereby making the…
2Cases cited1 opinion
- United States v. CartwrightSupreme Court of the United States · 1973
3Cited by33 opinions
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
- Achiro v. CommissionerUnited States Tax Court · 1981
- Allen Oil Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Fairfax Auto Parts of Northern Virginia, Inc. v. Commissioner of Internal Revenue, Fairfax Auto Parts, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1977
- Charles Baloian Co. v. CommissionerUnited States Tax Court · 1977
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