Messer v. Commissioner
United States Tax Court
Tel-O-Tube Corp. was dissolved under New Jersey law in 1960, but retained inter alia four interest-bearing notes and an antitrust claim until July 1961. Held, that the corporation continued in existence as a taxable entity through Sept. 30, 1961, pursuant to sec. 1.6012-2(a)(2), Income Tax Regs., and is taxable on the interest income earned with respect to the notes for the period from Sept. 30, 1960, to Aug. 1, 1961, and on the proceeds from the settlement of the antitrust…
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Tel-O-Tube Corp. was dissolved under New Jersey law in 1960, but retained inter alia four interest-bearing notes and an antitrust claim until July 1961. Held, that the corporation continued in existence as a taxable entity through Sept. 30, 1961, pursuant to sec. 1.6012-2(a)(2), Income Tax Regs., and is taxable on the interest income earned with respect to the notes for the period from Sept. 30, 1960, to Aug. 1, 1961, and on the proceeds from the settlement of the antitrust claim. Held, further, that the petitioners, its shareholders, are liable as transferees of the assets of the corporation…
1Opinion of the Court
OPINION
Petitioners contend that the corporation gave the Internal Revenue Service notice of the corporate liquidation, complied with the requirements of New Jersey law for de jure dissolution, closed its accounts and distributed all its assets, and terminated its existence on September 30,1960. The corporation, they assert, retained no assets, received no income, and was not required to file an income tax return for any period thereafter. Respondent, on the other hand, argues that Tel-O-Tube continued in existence after the date of its dissolution under New Jersey law because it retained…
2Cases cited25 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Goodstein v. CommissionerUnited States Tax Court · 1958
- Lang v. CommissionerSupreme Court of the United States · 1938
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3Cited by33 opinions
- Riss v. CommissionerUnited States Tax Court · 1971
- Norman and Arlene Rodman, Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Appellee-Cross-AppellantCourt of Appeals for the Second Circuit · 1976
- Robertson v. CommissionerUnited States Tax Court · 1971
- Maxcy v. CommissionerUnited States Tax Court · 1973
- Molbreak v. CommissionerUnited States Tax Court · 1973
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