Sears, Roebuck & Co. v. Commissioner
United States Tax Court
P is the parent of three wholly owned insurance company subsidiaries, S1, S2, and S3. S1 was a casualty and liability insurer and issued policies to P. P's premium payments to S1 represented .25 of 1 percent of the total premiums earned by S1. S1 conducted business with P in the same manner as it did with unrelated insureds; insurance contracts were written, premiums transferred, and losses paid.
Read the full summary
P is the parent of three wholly owned insurance company subsidiaries, S1, S2, and S3. S1 was a casualty and liability insurer and issued policies to P. P's premium payments to S1 represented .25 of 1 percent of the total premiums earned by S1. S1 conducted business with P in the same manner as it did with unrelated insureds; insurance contracts were written, premiums transferred, and losses paid. On consolidated returns, S1 deducted reserves based on premiums received from P. S2 and S3 insured lenders against losses on mortgage loans. S2 and S3 did not pay a loss until the insured lender…
1Opinion of the Court
COHEN, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes as follows:
FYE Deficiency
Jan. 31, 1981. $35,539,844
Dec. 31, 1981 (11 months). 7,706,252
Dec. 31, 1982 . 9,137,694
After concessions, the issues for decision are (1) whether certain payments by Sears, Roebuck and Co. to its wholly owned subsidiary, Allstate Insurance Co., are insurance premiums for tax purposes and (2) whether subsidiaries of Allstate Insurance Co. engaged in the mortgage guaranty insurance business may base estimated unpaid losses, deductible under section 832(c)(4), on defaults in payment by…
2Cases cited33 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Mid-State Fertilizer Co., Lasley Kimmel, and Maxine Kimmel v. Exchange National Bank of ChicagoCourt of Appeals for the Seventh Circuit · 1989
- Helvering v. Le GierseSupreme Court of the United States · 1941
28 more not listed; retrieve them via the Exa API.
3Cited by37 opinions
- Sears, Roebuck and Co. And Affiliated Corporations, Cross-Appellee v. Commissioner of Internal Revenue, Cross-AppellantCourt of Appeals for the Seventh Circuit · 1992
- Johnson v. CommissionerUnited States Tax Court · 1997
- Whitehouse Hotel L.P. v. Comm'rUnited States Tax Court · 2008
- Harper Group v. CommissionerUnited States Tax Court · 1991
- Florida Hosp. Trust Fund v. CommissionerUnited States Tax Court · 1994
32 more not listed; retrieve them via the Exa API.