McLaine v. Commissioner
United States Tax Court
In 1999 P exercised nonqualified stock options (NQOs) previously issued to him by E, his recent employer, and simultaneously sold the option stock, receiving from E the sale proceeds, less the exercise price, undiminished by withheld income taxes. P reported the gain but did not pay the balance shown as due on his return. R issued a notice of intent to levy to collect the balance, interest, and additions to tax for failures to pay tax and estimated tax.
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In 1999 P exercised nonqualified stock options (NQOs) previously issued to him by E, his recent employer, and simultaneously sold the option stock, receiving from E the sale proceeds, less the exercise price, undiminished by withheld income taxes. P reported the gain but did not pay the balance shown as due on his return. R issued a notice of intent to levy to collect the balance, interest, and additions to tax for failures to pay tax and estimated tax. P had a collection due process hearing, and R's Appeals Office determined to proceed with collection. P challenges the determination…
1Concurrence
Hat,pern, J.,
concurring: I concur with the results reached by the majority with respect to all of the issues. I write separately, however, to express my disagreement with the majority’s failure to hold, in deciding the section 31 credit issue, that, even if VarTec, in a later year, paid the nonwithheld taxes associated with the 1999 exercise, petitioner, as a matter of law, would not be entitled to a section 31(a) credit for that payment.
I. Introduction
Petitioner’s sole argument is that he is entitled to a section 31(a) credit against his 1999 tax liability for VarTec’s 2004 or 2005 payment…
2Cases cited7 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Begier v. Internal Revenue ServiceSupreme Court of the United States · 1990
- Railroad Companies v. SchutteSupreme Court of the United States · 1881
- Otte v. United StatesSupreme Court of the United States · 1974
- Union Pacific Railroad v. Mason City & Fort Dodge RailroadSupreme Court of the United States · 1905
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