American Liberty Oil Co. v. Commissioner
United States Tax Court
The taxpayer reported a loss from the sale of a lease and took a deduction for the loss in its return through an innocent mistake of law. Instead, the sale resulted in a profit in an amount in excess of 25 percent of the gross income reported in the return. Respondent's determination that a gain was realized and that there were resulting deficiencies in income and excess profits taxes was made after three years from the date the return was filed but within five years.
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The taxpayer reported a loss from the sale of a lease and took a deduction for the loss in its return through an innocent mistake of law. Instead, the sale resulted in a profit in an amount in excess of 25 percent of the gross income reported in the return. Respondent's determination that a gain was realized and that there were resulting deficiencies in income and excess profits taxes was made after three years from the date the return was filed but within five years. Held, that section 275 (c) of the Revenue Act of 1934 is applicable and, therefore, there is no bar of the statute of…
1Opinion of the Court
OPINION.
HaiíRon, Judge:
The facts have been stipulated and we adopt them as our findings of fact. Facts necessary to understand the issue are set forth. The petitioners filed their separate income tax returns with the collector for the second district of Texas. The only question is whether assessment of the deficiencies is barred by the statute of limitations, no deficiencies having been assessed within the three-year period after the filing of the return in question. American Liberty Oil Co. admits that it is .the transferee of the assets of Wolford Production Co.
The respondent determined…
2Cases cited3 opinions
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Reis v. CommissionerUnited States Tax Court · 1942
- Hale v. CommissionerUnited States Tax Court · 1942
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- Intermountain Insurance Service of Vail v. Commissioner of Internal Revenue ServiceCourt of Appeals for the D.C. Circuit · 2011
- M. C. Parrish & Co. v. CommissionerUnited States Tax Court · 1944
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