Professional Services v. Commissioner
United States Tax Court
1. In 1976 Eugene Morton, pursuant to a prearranged plan, borrowed $ 47,400 from Greenwich Trust, signed a promissory note for this amount, and transferred the $ 47,400 to International Tax & Business Consultants in exchange for a package of written materials relating to the creation and operation of "business trust organizations." Prior to filing his 1976 return, the above promissory note was returned to Eugene Morton's control pursuant to the overall plan.
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1. In 1976 Eugene Morton, pursuant to a prearranged plan, borrowed $ 47,400 from Greenwich Trust, signed a promissory note for this amount, and transferred the $ 47,400 to International Tax & Business Consultants in exchange for a package of written materials relating to the creation and operation of "business trust organizations." Prior to filing his 1976 return, the above promissory note was returned to Eugene Morton's control pursuant to the overall plan. Held, Eugene Morton's transfer of $ 47,400 to International Tax & Business Consultants was a payment merely in form and not in substance…
1Opinion of the Court
Kórner, Judge:*
Respondent determined deficiencies of income tax plus additions to tax under section 6653(a)2 as follows:
Year Docket No. Deficiency Sec. 6653(a) Petitioner
Eugene and Patricia Morton 1976 2676-80 $29,048 $1,452
1977 2675-80 88,590 4,430
1977 2674-80 40,669 2,033 Professional Services
By amended answers in docket No. 2675-80, respondent alleged that the underpayments attributable to Eugene and Patricia Morton for the years 1976 and 1977 were due to fraud and accordingly asserted that these petitioners were liable for additions to tax under section 6653(b) with respect to those years.
2Cases cited65 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
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3Cited by128 opinions
- Marshall v. CommissionerUnited States Tax Court · 1985
- Castillo v. CommissionerUnited States Tax Court · 1985
- Taube v. CommissionerUnited States Tax Court · 1987
- Lewis Arthur Merryman v. Commissioner of Internal Revenue, Michael A. Carroll and Margaret W. Carroll v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1989
- Sadler v. CommissionerUnited States Tax Court · 1999
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