Maguire v. Commissioner
United States Tax Court
In 1944, Mokan offered to redeem the stock of any stockholder in exchange for a proportionate share of its assets. Such offer remained in effect at least through 1966, and in 1960, the petitioners received distributions of the earnings and profits of Mokan, not in redemption of their stock.
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In 1944, Mokan offered to redeem the stock of any stockholder in exchange for a proportionate share of its assets. Such offer remained in effect at least through 1966, and in 1960, the petitioners received distributions of the earnings and profits of Mokan, not in redemption of their stock. The Tax Court held that Mokan was not in the process of complete liquidation in 1945 and that its distributions out of earnings and profits during such year were not liquidating distributions, but that decision was reversed by the Seventh Circuit. Held, collateral estoppel does not apply in the…
1Opinion of the Court
SimpsoN, Judge:
The respondent determined a deficiency of $213,909.24 in income taxes of the petitioners for the taxable year 1960. In this case, we have two issues— whether the corporation Mokan was in liquidation in 1960, and Whether the respondent is collaterally estopped from raising that issue as a result of an earlier decision holding that Mokan was in liquidation in 1945.
FINDINGS OP PACT
Some of the facts were stipulated, and those facts are so found.
The petitioners were husband and wife and legal residents of New York, N.Y., at the time the petition was filed in this case. They filed a…
2Cases cited17 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- United States v. Consolidated Edison Co. of NYSupreme Court of the United States · 1961
- Burford-Toothaker Tractor Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- R. D. Merrill Co. v. CommissionerUnited States Tax Court · 1945
- Stoddard v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1944
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3Cited by14 opinions
- Shiosaki v. CommissionerUnited States Tax Court · 1974
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- Environmental Preservation Co. v. CommissionerUnited States Tax Court · 1992
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