Legal Opinion

Long v. Commissioner

United States Tax Court

Decided September 13, 1989No. Docket No. 36064-87PublishedCited by 1 opinion

Held, petitioner's motion to reconsider our opinion in Long v. Commissioner, 93 T.C. 5 (1989), is denied, as the doctrine of constructive payment is inapplicable to the satisfaction of an account receivable established pursuant to Rev. Proc. 65-17, 1965-1 C.B. 833.

1Opinion of the Court

SUPPLEMENTAL OPINION

WHITAKER, Judge:

We issued our opinion in Long v. Commissioner, 93 T.C. 5 (1989), in which we held that the portion of an account receivable established between related corporations pursuant to Rev. Proc. 65-17, 1965-1 C.B. 833, which was not offset by a preexisting account payable and not otherwise satisfied via the methods authorized in that revenue procedure constituted a constructive dividend to the common shareholder and contribution to the capital of the transferee corporation in accordance with the implementing closing agreement. Petitioner, who is the controlling…

2Cases cited3 opinions

  1. F. D. Bissett & Son, Inc. v. CommissionerUnited States Tax Court · 1971
  2. White v. CommissionerUnited States Tax Court · 1974
  3. Long v. CommissionerUnited States Tax Court · 1989

3Cited by1 opinion

  1. Long v. CommissionerUnited States Tax Court · 1989

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