Alves v. Commissioner
United States Tax Court
In 1970, Lawrence J. Alves purchased 40,000 shares of stock of a new corporation by which he became employed for the fair market value of the stock at the date of purchase. His employment agreement stated that one of the reasons for issuance of the stock was to provide the employee with additional interest in the company.
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In 1970, Lawrence J. Alves purchased 40,000 shares of stock of a new corporation by which he became employed for the fair market value of the stock at the date of purchase. His employment agreement stated that one of the reasons for issuance of the stock was to provide the employee with additional interest in the company. Two-thirds of the stock was restricted from being sold prior to the expiration of a stated period and, if the employee left the employ of the corporation prior to the expiration of that period, the company could repurchase the stock at the amount the employee paid for it.…
1Dissent
Whitaker, J,
dissenting: I respectfully dissent. The issue in this case is whether or not the 4-year and 5-year shares of General Digital Corp. issued to petitioner in 1970 are subject to the provisions of section 83. By its terms, section 83 applies where property (i.e., stock) is transferred to a person "in connection with the performance of services.” On the facts found, the majority concludes that the transfer of the stock to petitioner was in connection with the performance of services for the company. However, nowhere is the phrase "in connection with the performance of services”…
2Cases cited5 opinions
- Tufts v. CommissionerUnited States Tax Court · 1978
- Gresham v. CommissionerUnited States Tax Court · 1982
- John F. Tufts and Mary A. Tufts v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
- Sheppard & Myers, Inc. v. CommissionerUnited States Tax Court · 1976
- Ziegler v. CommissionerUnited States Tax Court · 1978