Leach v. Commissioner
United States Tax Court
Petitioner was president and one of four equal stockholders in a corporation formed in September 1946 to build and sell houses on a tract of land. The houses were completed in March 1947, at which time each stockholder received a $ 2,200 dividend. The corporation's business activity ceased by June 1947, when its last house was sold.
Read the full summary
Petitioner was president and one of four equal stockholders in a corporation formed in September 1946 to build and sell houses on a tract of land. The houses were completed in March 1947, at which time each stockholder received a $ 2,200 dividend. The corporation's business activity ceased by June 1947, when its last house was sold. Prior to the closing of the corporation's fiscal year on October 31, 1947, it distributed $ 21,000 of its $ 22,115.13 surplus in four equal $ 5,250 salaries to the stockholders. A deficiency, which is uncontested, was determined by respondent in the corporation's…
1Opinion of the Court
OPINION.
Black, Judge:
The provision of the Internal Revenue Code providing the basis for a transferee’s liability for unpaid taxes of his transferor is printed in the margin.1 To hold a party liable as transferee in equity for a transferor’s delinquent taxes it must be proved (1) that the alleged transferee received assets of the transferor, and (2) that the transferor was insolvent at the time of, or was rendered insolvent-by, that transfer of assets. We have stated the elements of that liability in R. E. Wyche, 36 B. T. A. 414 at 418, as follows:
the mere fact of a transfer of part of its…
2Cases cited6 opinions
- Mayson Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Scott v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1941
- Borall Corp. v. CommissionerCourt of Appeals for the Second Circuit · 1948
- Buzard v. HelveringCourt of Appeals for the D.C. Circuit · 1935
- Commissioner v. RenyxCourt of Appeals for the Second Circuit · 1933
1 more not listed; retrieve them via the Exa API.
3Cited by80 opinions
- Kreps v. CommissionerUnited States Tax Court · 1964
- Papineau v. CommissionerUnited States Tax Court · 1957
- United Mercantile Agencies, Inc. v. CommissionerUnited States Tax Court · 1955
- Coca-Cola Bottling Co. v. CommissionerUnited States Tax Court · 1962
- Gumm v. CommissionerUnited States Tax Court · 1989
75 more not listed; retrieve them via the Exa API.