Kaufman v. Commissioner
United States Tax Court
Corporation A was recapitalized in 1964 and liquidated in 1965. The Commissioner seeks to strip the recapitalization of its tax-free nature due to the lack of a business purpose. Held, on the record herein, one which is fully stipulated, the petitioners have shown a valid business purpose for the recapitalization, and the Commissioner's reliance on inference is not sufficient to strip the transaction of its otherwise tax-free character. Sec. 368(a)(1)(E), I.R.C. 1954.
1Opinion of the Court
TietjeNS, Judge:
The Commissioner determined deficiencies in petitioners’ Federal income tax for taxable years 1964 and 1965 as follows:
Petitioner Deficiency
1964 me
Jerome J. Kaufman and Janet Kaufman, docket No. 1379-69_ $2,572,834.00 .
Joel A. Kaufman, docket No. 1381-69_ 8, 593. 41 $500. 01
James M. Kaufman, docket No. 1382-69_ 8, 617. 98 500. 00
Jeffrey S. Kaufman and Stephanie Kaufman, docket No. 1384-69_ 8, 461. 95 1,186. 95
2, 598, 507. 34 2, 186. 96
The petitioners in docket Nos. 1381-69, 1382-69, and 1384 — 69 have conceded their liability for the 1965 deficiencies.
The sole issue for our…
2Cases cited9 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- Skenandoa Rayon Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
- Commissioner of Internal Revenue v. Van VorstCourt of Appeals for the Ninth Circuit · 1932
- Okonite Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1946
- Van Vorst v. CommissionerUnited States Board of Tax Appeals · 1931
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Estate of Kelley v. CommissionerUnited States Tax Court · 1974
- Lorch v. CommissionerUnited States Tax Court · 1978
- Laughinghouse v. Comm'rUnited States Tax Court · 1983
- Estate of Kelley v. CommissionerUnited States Tax Court · 1974
- Kaufman v. CommissionerUnited States Tax Court · 1971
2 more not listed; retrieve them via the Exa API.