Rothstein v. Commissioner
United States Tax Court
Ps signed employment agreements which provided, inter alia, for each of them to receive 12 1/2 percent of the amount, if any, by which the adjusted proceeds from a sale of substantially all of the assets of their employer corporation exceeded $ 825,000. The employment agreements contained no provisions for Ps to be issued stock certificates or for Ps to have any rights of stockholders. No stock certificates in fact ever were issued to Ps.
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Ps signed employment agreements which provided, inter alia, for each of them to receive 12 1/2 percent of the amount, if any, by which the adjusted proceeds from a sale of substantially all of the assets of their employer corporation exceeded $ 825,000. The employment agreements contained no provisions for Ps to be issued stock certificates or for Ps to have any rights of stockholders. No stock certificates in fact ever were issued to Ps. Ps subsequently each received, pursuant to the employment agreements, $ 627,866 on account of the sale of all the assets of the employer corporation. Held,…
1Opinion of the Court
WELLS, Judge:
In these consolidated cases, respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Docket No. Petitioners Year Deficiency
11535-85 Robert and Ann Rothstein 1982 $565,539
19524-86 Eugene and Lois Cole 1982 225,990
1983 5,029
In addition, respondent determined that petitioners in docket No. 19524-86 were hable for additions to the tax as follows:
Year Sec. 6653(a)(1)1 Sec. 6653(a)(2) Sec. 6661(a)
1982 $11,299.50 <*) $22,599.00
1983 251.50 <*) 502.90
*50 percent of the interest due on the underpayment.
After concessions, the issues remaining for decision are (1)…
2Cases cited22 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Burnet v. HarmelSupreme Court of the United States · 1932
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
17 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Murphy v. CommissionerUnited States Tax Court · 1994
- Warbus v. CommissionerUnited States Tax Court · 1998
- Wachner v. CommissionerUnited States Tax Court · 1995
- Bressi v. CommissionerUnited States Tax Court · 1991
- Ghidoni v. CommissionerUnited States Tax Court · 1991
12 more not listed; retrieve them via the Exa API.