Greenspon v. Commissioner
United States Tax Court
Prior to 1931 petitioners owned all the stock of a corporation and were the managing officers. They orally guaranteed loans made to the corporation by their brother-in-law and by another company in the period from 1928 to 1931. In 1931 receivership proceedings were instituted against the corporation, and it was finally liquidated in 1938. The creditors of the corporation received no payments from the receiver on account of their claims.
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Prior to 1931 petitioners owned all the stock of a corporation and were the managing officers. They orally guaranteed loans made to the corporation by their brother-in-law and by another company in the period from 1928 to 1931. In 1931 receivership proceedings were instituted against the corporation, and it was finally liquidated in 1938. The creditors of the corporation received no payments from the receiver on account of their claims. One of the petitioners was also adjudged a bankrupt in 1938. Meanwhile, in 1932 petitioners organized a new corporation with money advanced by their…
1Opinion of the Court
OPINION.
Arundell, Judge:
With respect to the payments to Kronick, the respondent contends that neither petitioner in the taxable years could have been legally compelled to pay the debts owed to Kronick by the Jos. Greenspon’s Sons Iron & Steel Co. and that, therefore, the payments were not deductible either as bad debts or as losses. The reason advanced is that the petitioners had two valid legal defenses, namely, that their oral guarantees were within the Missouri statute of frauds (Mo. R. S. A., sec. 3354) and that the Missouri statute of limitations (Mo. R. S. A., secs. 1012-1014) had run.
Th…
2Cases cited5 opinions
- Zavelo v. ReevesSupreme Court of the United States · 1913
- Baron v. KurnSupreme Court of Missouri · 1942
- Ingersoll v. Commissioner (A)United States Tax Court · 1946
- Hess v. CommissionerUnited States Tax Court · 1946
- Farmers & Merchants Bank v. RichardsMissouri Court of Appeals · 1906
3Cited by5 opinions
- Portland Gasoline Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1950
- Edwards v. AllenCourt of Appeals for the Fifth Circuit · 1954
- Commissioner of Internal Revenue v. Gilt Edge Textile Corp.Court of Appeals for the Third Circuit · 1949
- Samuel Edwards, Administrator of the Estate of Marion H. Allen, Deceased, Former Collector of Internal Revenue for the District of Georgia v. H. C. Allen, Jr., and Margaret B. Allen, Samuel Edwards, Administrator of the Estate of Marion H. Allen, Deceased, Former Collector of Internal Revenue for the District of Georgia v. Ira H. Hardin and Bessye Allen Hardin, Samuel Edwards, Administrator of the Estate of Marion H. Allen, Deceased, Former Collector of Internal Revenue for the District of Georgia v. Sykes H. Young and Carroll M. YoungCourt of Appeals for the Fifth Circuit · 1954
- Greenspon v. CommissionerUnited States Tax Court · 1947