Legal Opinion

Kaufman v. Commissioner

United States Tax Court

Decided March 24, 1971No. Docket Nos. 1379-69, 1381-69, 1382-69, 1384-69Published

Corporation A was recapitalized in 1964 and liquidated in 1965. The Commissioner seeks to strip the recapitalization of its tax-free nature due to the lack of a business purpose. Held, on the record herein, one which is fully stipulated, the petitioners have shown a valid business purpose for the recapitalization, and the Commissioner's reliance on inference is not sufficient to strip the transaction of its otherwise tax-free character. Sec. 368(a)(1)(E), I.R.C. 1954.

1Opinion of the Court

Jerome J. Kaufman and Janet Kaufman, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent

Kaufman v. Commissioner

Docket Nos. 1379-69, 1381-69, 1382-69, 1384-69

United States Tax Court

55 T.C. 1046; 1971 U.S. Tax Ct. LEXIS 166;

March 24, 1971, Filed

Decisions will be entered under Rule 50.

Corporation A was recapitalized in 1964 and liquidated in 1965. The Commissioner seeks to strip the recapitalization of its tax-free nature due to the lack of a business purpose. Held, on the record herein, one which is fully stipulated, the petitioners have shown a valid business purpose for the…

2Cases cited10 opinions

  1. Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
  2. Skenandoa Rayon Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
  3. Commissioner of Internal Revenue v. Van VorstCourt of Appeals for the Ninth Circuit · 1932
  4. Okonite Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1946
  5. Van Vorst v. CommissionerUnited States Board of Tax Appeals · 1931

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