Menard, Inc. v. Comm'r
United States Tax Court
MI is an accrual basis taxpayer with a fiscal year ending Jan. 31. S is a cash basis taxpayer who was the president, CEO, and 89-percent shareholder of MI during MI's TYE 1998. In an earlier opinion, the Court concluded that a portion of the compensation that MI paid to S during TYE 1998 was unreasonable and represented a disguised dividend, and consequently MI was liable for an income tax deficiency to the extent S's compensation was not deductible as an ordinary and…
Read the full summary
MI is an accrual basis taxpayer with a fiscal year ending Jan. 31. S is a cash basis taxpayer who was the president, CEO, and 89-percent shareholder of MI during MI's TYE 1998. In an earlier opinion, the Court concluded that a portion of the compensation that MI paid to S during TYE 1998 was unreasonable and represented a disguised dividend, and consequently MI was liable for an income tax deficiency to the extent S's compensation was not deductible as an ordinary and necessary business expense. The Court also concluded that S was liable for an income tax deficiency to the extent MI's payment…
1Opinion of the Court
SUPPLEMENTAL OPINION
Marvel, Judge:
This matter is before the Court on petitioners’ objection to respondent’s proposed Rule 1551 computations submitted in response to our holdings in Menard, Inc. v. Commissioner, T.C. Memo. 2004-207 (Menard I), and Menard, Inc. v. Commissioner, T.C. Memo. 2005-3 (Menard II). As discussed in greater detail below, in Menard I we held that petitioners are liable for income tax deficiencies for the taxable year ended (tye) 1998. In Menard II we denied petitioners’ motion for reconsideration.
The issue we must decide is whether, under the equitable recoupment…
2Cases cited20 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- United States v. DalmSupreme Court of the United States · 1990
- Naftel v. CommissionerUnited States Tax Court · 1985
- Jones v. Liberty Glass Co.Supreme Court of the United States · 1948
- Woods v. CommissionerUnited States Tax Court · 1989
15 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- ADT Security Services, Inc. v. JohnsonCourt of Appeals of Tennessee · 2009
- Big Blue Express v. Nebraska Dept. of Rev.Nebraska Supreme Court · 2021
- Battat v. Comm'rUnited States Tax Court · 2017
- Estate of Kwang Lee v. Comm'rUnited States Tax Court · 2009
- Revah v. Comm'rUnited States Tax Court · 2010
8 more not listed; retrieve them via the Exa API.