Coven v. Commissioner
United States Tax Court
Petitioner entered into a "Consulting Contract," upon retirement from an accounting partnership, with the major remaining partner which provided that petitioner, or his wife if she survived him, would receive $ 25,000 annually for life for consulting services he would render after retirement.
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Petitioner entered into a "Consulting Contract," upon retirement from an accounting partnership, with the major remaining partner which provided that petitioner, or his wife if she survived him, would receive $ 25,000 annually for life for consulting services he would render after retirement. The "Consulting Contract" also provided for a decreasing lump-sum distribution to the survivor's estate should both petitioners die before 1991. Respondent contends such payments were made in liquidation of petitioner's partnership interest and thus were taxable as ordinary income under sec. 736(a),…
1Opinion of the Court
Wiles, Judge:
Respondent determined deficiencies in petitioners’ income taxes as follows:
Year Deficiency Year Deficiency
1967_ $9,298.92 1969 _ $7,893.80
1968_ 7,415.36 1970 _ 14,355,00
38,963.08
Petitioners have conceded some issues, and the only issue for decision is whether certain payments received by petitioners upon retirement of Daniel Coven from the partnership of Coven & Suttenberg constituted (1) compensation for services under section 61;1 (2) payments by the partnership in liquidation of Coven’s partnership interest, taxable as ordinary income under section 736; or (3) payments by…
2Cases cited13 opinions
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Schmitz v. CommissionerUnited States Tax Court · 1968
- Foxman v. CommissionerUnited States Tax Court · 1964
- Albert H. And Doris G. Throndson v. Commissioner of Internal Revenue, Albert H. And Doris G. Throndson v. Commissioner of Internal Revenue, J. Leonard Schmitz and Alice Schmitz v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1972
- Haverty Realty & Inv. Co. v. CommissionerUnited States Tax Court · 1944
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3Cited by15 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Spector v. CommissionerUnited States Tax Court · 1979
- Pollack v. CommissionerUnited States Tax Court · 1977
- Estate of Bette v. CommissionerUnited States Tax Court · 1977
- Heritage Auto Ctr. v. CommissionerUnited States Tax Court · 1996
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