Continental Bankers Life Ins. Co. v. Commissioner
United States Tax Court
F directly owned 100 percent of the stock of both P (a life insurance company) and C, and 56.32 percent of the stock of CBN. C directly owned 20 percent of the stock in CBN. P acquired all of F's stock and C's stock in CBN with property.
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F directly owned 100 percent of the stock of both P (a life insurance company) and C, and 56.32 percent of the stock of CBN. C directly owned 20 percent of the stock in CBN. P acquired all of F's stock and C's stock in CBN with property. Held, P's acquisitions of F's stock and C's stock in CBN are treated as distributions in redemption of P's stock under sec. 304(a)(1). Held, further, P made distributions under sec. 815 resulting in phase III taxable income under sec. 802(b)(3) to the extent made out of its policyholders' surplus account. P claimed an operations loss carryover deduction in…
1Opinion of the Court
PARR, Judge:
Respondent determined deficiencies in and additions to petitioner’s Federal income tax as follows:
Calendar year Deficiency Additions to tax sec. 6651(a)(1)1
$310,400 1976
1977 168,893
1978 97,144 $24,286
1979 30,260 1,513
1980 356,297
After concessions, the issues for decision are: (1) Whether petitioner’s acquisitions of its parent and sister corporations’ stock in Continental Bankers Life Insurance Company of the North are treated as distributions in redemption of petitioner’s stock under section 304(a)(1), and, if so, whether petitioner made distributions under section 815 resulting…
2Cases cited19 opinions
- Dallmeyer v. CommissionerUnited States Tax Court · 1950
- Crown v. CommissionerUnited States Tax Court · 1981
- Niedermeyer v. CommissionerUnited States Tax Court · 1974
- Fehrs Finance Co. v. CommissionerUnited States Tax Court · 1972
- Fehrs Finance Company, Cross-Appellee v. Commissioner of Internal Revenue, Cross-AppellantCourt of Appeals for the Eighth Circuit · 1973
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3Cited by7 opinions
- Bankers Life and Casualty Company v. United StatesCourt of Appeals for the Seventh Circuit · 1998
- USAA Life Ins. Co. v. CommissionerUnited States Tax Court · 1990
- Johnson v. CommissionerUnited States Tax Court · 1991
- Continental Bankers Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
- Feldman v. CommissionerUnited States Tax Court · 1991
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