Johnson v. Comm'r
United States Tax Court
R determined that P was liable as a transferee of assets from C and, therefore, was liable for C's tax liabilities. P was the 100-percent owner and president of C. The transfer to P was from a settlement that P, C, and C's subsidiaries had reached with a creditor.
Read the full summary
R determined that P was liable as a transferee of assets from C and, therefore, was liable for C's tax liabilities. P was the 100-percent owner and president of C. The transfer to P was from a settlement that P, C, and C's subsidiaries had reached with a creditor. P contends that the portion he received was in consideration of his releasing a claim of his own against the creditor for damages to business reputation, so that, in effect, there was no transfer from C. R contends that the settlement belonged to the corporate entities and that P was a transferee. If it is decided that the transfer…
1Opinion of the Court
Gerber, Judge:
In a notice of liability, respondent determined that petitioner is liable as a transferee at law and in equity for the assessed Federal income tax liability and additions to tax of Johnson Consolidated Cos., Inc., & Subsidiaries (JCC), for its taxable year ending June 30, 1989. Respondent determined that petitioner is liable for JCC’s income tax liability of $57,004 and additions to the tax in the amounts of $12,825.90 and $14,251 under section 6651(a)(1)1 and (2), respectively.
There is no dispute concerning JCC’s liability for the deficiency. The issue for our consideration is…
2Cases cited8 opinions
- Commissioner v. SternSupreme Court of the United States · 1958
- William S. Hagaman, Bonnie C. Hagaman v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1992
- Gumm v. CommissionerUnited States Tax Court · 1989
- Morgan (Carol) v. Barsky (Marvin J.)Court of Appeals for the Ninth Circuit · 1991
- Hagaman v. CommissionerUnited States Tax Court · 1993
3 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Johnson v. Comm'rUnited States Tax Court · 2002
- Larry D. Johnson v. CommissionerUnited States Tax Court · 2002