New Phoenix Sunrise Corp. v. Comm'r
United States Tax Court
P is the parent of a consolidated group of corporations and a wholly owned subsidiary S. During 2001 S sold substantially all of its assets, realizing a gain of about $ 10 million.
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P is the parent of a consolidated group of corporations and a wholly owned subsidiary S. During 2001 S sold substantially all of its assets, realizing a gain of about $ 10 million. Also during 2001, S entered into a transaction whereby: (1) S purchased from and sold to a foreign bank respectively a long and a short option in foreign currency, paying only the net premium to the foreign bank; (2) S and W, a part owner of P, formed partnership O; and (3) S contributed the long and short options to O, increasing its basis in O by the amount of the premium on the purchased long option but not…
1Opinion of the Court
Goeke, Judge:
Respondent determined a deficiency of $3,355,906 in petitioner’s Federal income tax for 2001 and imposed a penalty under section 6662 of $1,298,284.1 For the reasons stated herein, we uphold the determinations in the notice of deficiency and find the section 6662 penalty applicable.
FINDINGS OF FACT
Some of the facts have been stipulated, and the stipulations of fact and the accompanying exhibits are incorporated herein by this reference.
On April 30, 1973, the Pruett-Wray Cattle Co. was incorporated pursuant to the laws of the State of Arizona. In 1990 it changed its name to New…
2Cases cited28 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. BoyleSupreme Court of the United States · 1985
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Neonatology Assocs., P.A. v. Comm'rUnited States Tax Court · 2000
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