CHM Co. v. Commissioner
United States Tax Court
Subchapter S. -- In 1961 CHM Co. filed an election under sec. 1372 of subch. S of the Internal Revenue Code of 1954. One of its five shareholders filed a voluntary petition in bankruptcy under ch. XI of the Bankruptcy Act in 1963, and another shareholder filed a voluntary petition in proceedings under ch. XII of the Bankruptcy Act in 1969. Held, a corporation's status as an electing corporation under subch.
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Subchapter S. -- In 1961 CHM Co. filed an election under sec. 1372 of subch. S of the Internal Revenue Code of 1954. One of its five shareholders filed a voluntary petition in bankruptcy under ch. XI of the Bankruptcy Act in 1963, and another shareholder filed a voluntary petition in proceedings under ch. XII of the Bankruptcy Act in 1969. Held, a corporation's status as an electing corporation under subch. S is not terminated by the filing of petitions under ch. XI or XII by some of its shareholders.
1Opinion of the Court
Wilbur, Judge:
Respondent has determined the following deficiencies in petitioner’s Federal income tax:
TYE Mar. 31— Deficiency
1969. $68,743
1970. 30,328
1971. 38,757
The issue for decision is whether petitioner’s status as an electing corporation under subchapter S of the Code was terminated by the filing of petitions under chapter XI or XII of the Bankruptcy Act by some of its shareholders.
FINDINGS OF FACT
All of the facts have been stipulated and are found accordingly.
Petitioner CHM Co. (CHM) was incorporated under the laws of California on July 31, 1961, and was dissolved under the laws of…
2Cases cited12 opinions
- Nicholas v. United StatesSupreme Court of the United States · 1966
- Kean v. CommissionerUnited States Tax Court · 1968
- Kean v. CommissionerCourt of Appeals for the Ninth Circuit · 1972
- Pacific Coast Music Jobbers, Inc. v. CommissionerUnited States Tax Court · 1971
- Pottstown Iron Co. v. United StatesSupreme Court of the United States · 1931
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3Cited by10 opinions
- Davis v. CommissionerUnited States Tax Court · 1978
- In Re WeisserDistrict Court, M.D. Florida · 1979
- Bergman v. CommissionerUnited States Tax Court · 1985
- CHM Co. v. CommissionerUnited States Tax Court · 1977
- Davis v. CommissionerUnited States Tax Court · 1978
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