Carione v. United States

MEMORANDUM & ORDER

HURLEY, District Judge.

INTRODUCTION

Plaintiff Joseph Carione filed the present action against the United States, seeking a refund of income tax that he claims to have paid erroneously. The issue in this case is whether the proceeds of an S Corporation’s sale of its business assets, held in escrow and then directly transferred to the Government to satisfy an outstanding forfeiture judgment, can constitute taxable income to that corporation’s shareholder — and if so, when. Carione argues that such proceeds were never taxable. The United States argues that they were properly…