Perano v. Comm'r
United States Tax Court
In 1994 and 1996, Ps, the sole shareholders of AG, a controlled foreign corporation as defined in sec. 957, I.R.C., transferred to AG United States real property and notes secured by such property in exchange for private annuity agreements that provided for the future payment of monthly annuities to Ps for their remaining joint lives.
Read the full summary
In 1994 and 1996, Ps, the sole shareholders of AG, a controlled foreign corporation as defined in sec. 957, I.R.C., transferred to AG United States real property and notes secured by such property in exchange for private annuity agreements that provided for the future payment of monthly annuities to Ps for their remaining joint lives. For 1994-2001, AG accrued liabilities with respect to those agreements in amounts that, for 2001, exceeded income and, cumulatively, exceeded accumulated earnings and profits as of Dec. 31, 2001. Relying upon sec. 953, I.R.C., and the regulations thereunder, Ps…
1Opinion of the Court
OPINION
HALPERN, Judge:
By notice of deficiency dated December 22, 2005, respondent determined deficiencies in petitioners’ Federal income taxes of $203,939 and $70,815 for 2001 and 2002, respectively, and accuracy-related penalties of $40,788 and $14,163 for those years, respectively.
Unless otherwise indicated, all section references are to the Internal Revenue Code for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. After concessions, the only issue for decision is whether accruals for the future payment of annuities made by a controlled…
2Cases cited9 opinions
- Helvering v. Le GierseSupreme Court of the United States · 1941
- Amerco v. CommissionerUnited States Tax Court · 1991
- Amerco, Inc. Republic Insurance v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1992
- Dean v. Commissioner of Interna RevenueCourt of Appeals for the Third Circuit · 1951
- Patty v. HelveringCourt of Appeals for the Second Circuit · 1938
4 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- State Farm Mut. Auto. Ins. Co. v. Comm'rUnited States Tax Court · 2008
- Dante and Sandi Perano v. CommissionerUnited States Tax Court · 2008
- Perano v. Comm'rUnited States Tax Court · 2008
- State Farm Mut. Auto. Ins. Co. v. Comm'rUnited States Tax Court · 2008
- State Farm Mutual Automobile Insurance Company & Subsidiaries v. CommissionerUnited States Tax Court · 2008