Pledger v. Commissioner
United States Tax Court
Petitioner Pledger acquired 30,000 shares of stock in 1971 pursuant to the exercise of a nonstatutory employment stock option governed by sec. 83, I.R.C. 1954. The stock was not subject to a substantial risk of forfeiture or a restriction which by its terms would never lapse. However, the stock was subject to restrictions imposed by Federal securities law.
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Petitioner Pledger acquired 30,000 shares of stock in 1971 pursuant to the exercise of a nonstatutory employment stock option governed by sec. 83, I.R.C. 1954. The stock was not subject to a substantial risk of forfeiture or a restriction which by its terms would never lapse. However, the stock was subject to restrictions imposed by Federal securities law. These restrictions would have reduced the value of the stock by 35 percent had petitioner Pledger sold the stock immediately following acquisition. Held, restrictions imposed by law, i.e., Federal securities law, are within the meaning of…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in the Federal income tax of petitioners as follows:
Docket Petitioners No. Taxable year Deficiency Addition to tax sec. 6651(a)
Thomas R. and Phyllis R. Pledger . 10855-75 1970 $13,042.03 0
1971 155,416.27 0
6532-76 1973 265,024.80 0
Fausto A. and Mary Jane Fuentes 6533-76 1968 1,990.20 $497.55
1969 2,039.73 509.93
1970 3,982.75 995.69
6557-76 1972 236,084.83 0
1974 183,986.91 0
Respondent has conceded that petitioners Fuentes are not liable for any deficiency in income tax or addition to tax for the taxable years 1968, 1969, and 1970 set forth…
2Cases cited15 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Crane v. CommissionerSupreme Court of the United States · 1947
10 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Bagley v. CommissionerUnited States Tax Court · 1985
- Alves v. CommissionerUnited States Tax Court · 1982
- Thomas R. Pledger and Phyllis R. Pledger v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
- Horwith v. CommissionerUnited States Tax Court · 1979
- Robinson v. CommissionerUnited States Tax Court · 1984
15 more not listed; retrieve them via the Exa API.