Cold Metal Process Co. v. Commissioner
United States Tax Court
In 1945 a trustee which owned 151 shares of stock of a corporation acquired the remaining 1,849 shares in consideration of its promise to pay a total of $ 11,131,000 for the shares when funds became available. The corporation then filed a certificate of dissolution and assigned its assets to the trustee. Among the assets were claims for past infringement and royalties due on certain patents.
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In 1945 a trustee which owned 151 shares of stock of a corporation acquired the remaining 1,849 shares in consideration of its promise to pay a total of $ 11,131,000 for the shares when funds became available. The corporation then filed a certificate of dissolution and assigned its assets to the trustee. Among the assets were claims for past infringement and royalties due on certain patents. Due to various orders in certain suits brought by the United States, moneys subsequently paid on these claims were paid into court. In 1949 the above suits were terminated and the moneys were paid over to…
1Opinion of the Court
opinion.
Bruce, Judge:
The first question for decision is whether Cold Metal was a corporation in existence for tax purposes in 1949. Petitioners contend that it was extinct, and respondent determined that it still had sufficient life to be chargeable with the receipt of income.
Respondent contends that Cold Metal, by transferring its assets to the Trustee, merely turned its assets over to a receiver or trustee in liquidation which continued to operate the corporation, and, therefore, the corporation was still in existence, citing First Nat. Bank of Greeley, Colo. v. United States, (C. A. 10) 86…
2Cases cited26 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
21 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Cold Metal Process Co. v. CommissionerCourt of Appeals for the Sixth Circuit · 1957
- Commissioner of Internal Revenue v. The Leon A. Beeghly Fund, the Union National Bank of Youngstown, Ohio, TrusteeCourt of Appeals for the Sixth Circuit · 1962
- The Cold Metal Process Company v. Commissioner of Internal Revenue, the Leon A. Beeghly Fund, the Union National Bank of Youngstown, Ohio, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1957
- Cold Metal Process Co. v. CommissionerUnited States Tax Court · 1956