Morrison v. Commissioner
United States Tax Court
A and B, owners of a majority of the stock in a corporation, negotiated a plan for the merger of their corporation with a larger one. The plan tentatively agreed upon called for a pro rata exchange of the stock of the merged corporation for 666 shares of the surviving corporation and for A and B to agree to be employed by such corporation and to give a covenant not to compete.
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A and B, owners of a majority of the stock in a corporation, negotiated a plan for the merger of their corporation with a larger one. The plan tentatively agreed upon called for a pro rata exchange of the stock of the merged corporation for 666 shares of the surviving corporation and for A and B to agree to be employed by such corporation and to give a covenant not to compete. At the suggestion of A and B, the plan was recast to provide for a pro rata distribution of 516 shares and to give A and B each an option to buy 75 shares of the surviving corporation at $ 1 per share. Held, A received…
1Opinion of the Court
FeathbrstoN, Judge:
Respondent determined a deficiency in petitioners’ income tax for 1966 in the amount of $86,555.77. The issues presented for decision are as follows:(1) Whether a right to acquire 75 shares of stock in a corporation surviving a merger, in addition to a pro rata distribution of other shares, was received by petitioner Jack F. Morrison as consideration for future services and a covenant not to compete; and, if so,(2) What was the fair market value of the option received by petitioner Jack F. Morrison ?
FINDINGS OF FACT
At the time they filed their petition, Jack F. Morrison…
2Cases cited15 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Commissioner v. SmithSupreme Court of the United States · 1945
- Danielson v. CommissionerUnited States Tax Court · 1965
- United States v. William D. Frazell and Martha T. FrazellCourt of Appeals for the Fifth Circuit · 1964
10 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Morris G. Underwood and Jackie Underwood, Individuals v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1976
- Smith v. CommissionerUnited States Tax Court · 1984
- Mitchell v. CommissionerUnited States Tax Court · 1976
- Mitchell v. CommissionerUnited States Tax Court · 1990
- Ehlert v. CommissionerUnited States Tax Court · 1985
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