Catterall v. Commissioner
United States Tax Court
Petitioners exchanged their stock in Berwick for voting stock of Whittaker in 1968 in a tax-free reorganization under sec. 354(a)(1) and 368(a)(1)(B), I.R.C. 1954. The reorganization agreement provided for the delivery of additional shares based upon the future profits of Berwick and the future fair market value of the stock of Whittaker. No provision was made for the payment of interest on the additional shares.
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Petitioners exchanged their stock in Berwick for voting stock of Whittaker in 1968 in a tax-free reorganization under sec. 354(a)(1) and 368(a)(1)(B), I.R.C. 1954. The reorganization agreement provided for the delivery of additional shares based upon the future profits of Berwick and the future fair market value of the stock of Whittaker. No provision was made for the payment of interest on the additional shares. The Commissioner imputed interest income to petitioners pursuant to sec. 483 on the receipt of additional shares in 1971 under the terms of the reorganization agreement. Held, the…
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined deficiencies in petitioners’ Federal income taxes for the taxable year 1971 as follows:
Docket No. Petitioners Deficiency
5817-74 Alfred H. and Dorothy Catterall, Sr. $28,989.97
6457-74 Ray P. and Edna K, McBride. 31,917.74
6488-74 Walter F. and Florence Vorbleski. 29,228.56
The cases were consolidated for purposes of trial, briefing, and opinion. Concessions having been made, the sole issue for decision is whether the imputed interest provisions of section 483,2 I.R.C. 1954, apply to the deferred receipt of stock, the receipt of which was contingent…
2Cases cited10 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Barr v. United StatesSupreme Court of the United States · 1945
- Bulova Watch Co. v. United StatesSupreme Court of the United States · 1961
- June M. Carlberg, by Vida M. Frick, Guardian v. United StatesCourt of Appeals for the Eighth Circuit · 1960
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3Cited by31 opinions
- Zuanich v. CommissionerUnited States Tax Court · 1981
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- Walter F. Vorbleski and Florence Vorbleski v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1978
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- Anderson v. Comm'rUnited States Tax Court · 2004
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