Caracci v. Comm'r
United States Tax Court
Members of the C family wholly own three home health care organizations (P1, P2, and P3) exempt from Federal income taxes under sec. 501(c)(3), I.R.C. In 1995, the C family created three S corporations (S1, S2, and S3) and collectively received all of the resulting stock. P1, P2, and P3 then transferred all of their assets to S1, S2, and S3, respectively, in exchange for each transferee's assumption of the transferor's liabilities.
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Members of the C family wholly own three home health care organizations (P1, P2, and P3) exempt from Federal income taxes under sec. 501(c)(3), I.R.C. In 1995, the C family created three S corporations (S1, S2, and S3) and collectively received all of the resulting stock. P1, P2, and P3 then transferred all of their assets to S1, S2, and S3, respectively, in exchange for each transferee's assumption of the transferor's liabilities. R determined that the fair market value of the transferred assets substantially exceeded the consideration received in exchange. Accordingly, R determined S1, S2,…
1Opinion of the Court
Laro, Judge:
These cases are before the Court consolidated. Petitioners seek review of respondent’s determinations for 1995 of income tax deficiencies, excise tax deficiencies under section 4958, accuracy-related penalties under section 6662(a), and revocations of exempt status under section 501(c)(3).2 Respondent determined the following income tax deficiencies and accuracy-related penalties:
Accuracy-related penalty Petitioner Deficiency sec. 6662(a)
Michael T. and Cindy W. Caracci $2,192,643 $438,528.60
Vincent E. and Denise A. Caracci 1,272,216 254,443.20
Christina C. and David C. McQuillen…
2Cases cited42 opinions
- Daubert v. Merrell Dow Pharmaceuticals, Inc.Supreme Court of the United States · 1993
- Kumho Tire Co. v. CarmichaelSupreme Court of the United States · 1999
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- United States v. CartwrightSupreme Court of the United States · 1973
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3Cited by11 opinions
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- Sta-Home Health Agcy v. CIRCourt of Appeals for the Fifth Circuit · 2006
- Brewer Quality Homes, Inc. v. Comm'rUnited States Tax Court · 2003
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