Middle Atlantic Distributors, Inc. v. Commissioner
United States Tax Court
Petitioner was a wine and liquor importer. At various times between 1957 and 1962, it released liquors from its bonded warehouse to an official of the Turkish Embassy. Subsequently, it was discovered that the documents under which this official withdrew the liquors were fraudulent. Criminal charges were filed against petitioner but were dismissed on motion of the United States.
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Petitioner was a wine and liquor importer. At various times between 1957 and 1962, it released liquors from its bonded warehouse to an official of the Turkish Embassy. Subsequently, it was discovered that the documents under which this official withdrew the liquors were fraudulent. Criminal charges were filed against petitioner but were dismissed on motion of the United States. A civil suit against petitioner under 19 U.S.C. sec. 1592 was also filed, but was settled prior to trial under an agreement by which petitioner paid the United States $ 100,000 as liquidated damages, and the United…
1Opinion of the Court
Sterrett, Judge:
In a timely mailed notice of deficiency dated November 30, 1977, respondent determined deficiencies in petitioner’s income taxes due for the following years and in the following amounts:
FYE Jan. 31— Claimed deficiency
1970 . $17,984.04
1974 . 16,716.38
1975 . 17,128.66
After concessions, the only issue for our decision is whether certain installment payments made by petitioner during its taxable years ended January 31, 1970, 1974, and 1975, pursuant to a stipulation of compromise which settled a civil suit against petitioner by the United States, are nondeductible by virtue of…
2Cases cited10 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Uhlenbrock v. CommissionerUnited States Tax Court · 1977
- Tucker v. CommissionerUnited States Tax Court · 1978
- Grossman & Sons v. CommissionerUnited States Tax Court · 1967
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3Cited by16 opinions
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- Waldman v. CommissionerUnited States Tax Court · 1987
- S & B Restaurant, Inc. v. CommissionerUnited States Tax Court · 1980
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