Television Industries, Inc. v. Commissioner
United States Tax Court
The petitioner's tranferor, Phoenix, purchased from the stockholders of Nedick's, Inc., 90 per cent of the outstanding stock of Nedick's, Inc., the purchase price to be paid in installments over a period of 6 months. Phoenix did not have sufficient funds to pay the full purchase price, but Nedick's, Inc., did have cash and liquid assets.
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The petitioner's tranferor, Phoenix, purchased from the stockholders of Nedick's, Inc., 90 per cent of the outstanding stock of Nedick's, Inc., the purchase price to be paid in installments over a period of 6 months. Phoenix did not have sufficient funds to pay the full purchase price, but Nedick's, Inc., did have cash and liquid assets. At the time when the final payment became due Phoenix obtained a clearance loan of $ 1 million from a bank and on the same date paid the remaining purchase price, surrendered a part of the stock to Nedick's, Inc., receiving a distribution in excess of $ 1…
1Opinion of the Court
OPINION.
Atkins, Judge:
The respondent determined that the petitioner was liable, as transferee, for deficiencies in income taxes and interest due from the transferor, National Phoenix Industries, Inc., totaling $71,717.42 for the year 1951 and $77,199.53 for 1953. By stipulation the respondent has now conceded that assessment against petitioner, as transferee, of any income tax deficiency of the transferor for 1951 is barred by the statute of limitations. However, there remains the question whether in 1951 the transferor received a distribution essentially equivalent to a dividend in the…
2Cases cited10 opinions
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Joseph R. Holsey and Eleanor T. Holsey v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Zenz v. QuinlivanCourt of Appeals for the Sixth Circuit · 1954
- Fox v. HarrisonCourt of Appeals for the Seventh Circuit · 1944
5 more not listed; retrieve them via the Exa API.
3Cited by44 opinions
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- Television Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Rogers v. CommissionerUnited States Tax Court · 1965
- Kobacker v. CommissionerUnited States Tax Court · 1962
- Estate of Durkin v. CommissionerUnited States Tax Court · 1992
39 more not listed; retrieve them via the Exa API.