Estate of Sidles v. Commissioner
United States Tax Court
Decedent was the sole shareholder of a corporation. Prior to his death, a plan of complete liquidation under sec. 337, I.R.C. 1954, was adopted and the corporation's principal asset was sold pursuant to this plan.
Read the full summary
Decedent was the sole shareholder of a corporation. Prior to his death, a plan of complete liquidation under sec. 337, I.R.C. 1954, was adopted and the corporation's principal asset was sold pursuant to this plan. As of the date of decedent's death all that remained to be done under the plan was a corporate resolution to distribute and the distribution of the corporation's assets, subject to its liabilities, and the execution and filing of the articles of dissolution with the State. Held, on the date of his death the decedent possessed the right to receive the proceeds of the liquidation;…
1DissentTannenwald, J.
While the issue is not entirely free from doubt, I accept the majority conclusion that the proceeds of the liquidation are “income in respect of a decedent” within the meaning of section 691. Prior to the decedent’s death, both the directors and the shareholders had not only resolved to liquidate Bi-State but had specifically provided in the respective resolutions that all of Bi-State’s assets be sold, that the officers of Bi-State be “authorized and directed to file a Statement of Intent to Dissolve and Articles of Dissolution pursuant to the Nebraska Business Corporation Act” (emphasis…
2Cases cited19 opinions
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Lone Manor Farms, Inc. v. CommissionerUnited States Tax Court · 1974
- Commissioner of Internal Revenue v. LindeCourt of Appeals for the Ninth Circuit · 1954
- Edwin W. Hudspeth and Maxine G. Hudspeth v. United StatesCourt of Appeals for the Eighth Circuit · 1972
14 more not listed; retrieve them via the Exa API.