Du Pont v. Commissioner
United States Tax Court
Respondent advised petitioner that a sale of a 50-acre tract of land by petitioner to a private foundation in 1971 was an act of self-dealing and would have to be reversed to avoid imposition of the excise tax imposed by sec. 4941(a), I.R.C. 1954. In July of 1973, the foundation transferred the property back to petitioner who immediately retransferred the property to the foundation through a straw man who was not a "disqualified person."
Read the full summary
Respondent advised petitioner that a sale of a 50-acre tract of land by petitioner to a private foundation in 1971 was an act of self-dealing and would have to be reversed to avoid imposition of the excise tax imposed by sec. 4941(a), I.R.C. 1954. In July of 1973, the foundation transferred the property back to petitioner who immediately retransferred the property to the foundation through a straw man who was not a "disqualified person." In December of 1975, respondent determined that the 1973 transaction was an act of self-dealing and imposed the first-tier tax. Petitioner filed a motion for…
1Opinion of the Court
OPINION
Drennen, Judge:
This case is presently before the Court on petitioner's motion for judgment on the pleadings on the grounds that respondent’s answer shows that petitioner is entitled to judgment as a matter of law. Rule 120, Tax Court Rules of Practice and Procedure.
For each of the years 1973, 1974, and 1975, respondent determined a section 4941(a)(1), I.R.C. 1954,1 excise tax deficiency in the amount of $1,250 as a result of the further determination that petitioner had engaged in an act of self-dealing in July 1973 which act remained uncorrected until December 1975. Petitioner filed a…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Anthony v. CommissionerUnited States Tax Court · 1976
- Shaheen v. CommissionerUnited States Tax Court · 1974
3Cited by4 opinions
- Century Data Sys. ex rel. California Computer Prods. v. CommissionerUnited States Tax Court · 1986
- Century Data Sys. ex rel. California Computer Prods. v. CommissionerUnited States Tax Court · 1986
- Du Pont v. CommissionerUnited States Tax Court · 1980
- Merritt v. CommissionerUnited States Tax Court · 1983