Prescott v. Commissioner
United States Tax Court
In 1954 petitioner elected to have his sole proprietorship taxed as a corporation under sec. 1361. Such election terminated by operation of law on Jan. 1, 1969. Held: 1. Petitioner is deemed to have received the assets of his business enterprise in a complete corporate liquidation on Jan. 1, 1969. 2. No portion of the gain realized on such liquidation is exempt from tax because of the character of the assets deemed distributed. 3. Petitioner has failed to carry his burden to…
Read the full summary
In 1954 petitioner elected to have his sole proprietorship taxed as a corporation under sec. 1361. Such election terminated by operation of law on Jan. 1, 1969. Held: 1. Petitioner is deemed to have received the assets of his business enterprise in a complete corporate liquidation on Jan. 1, 1969. 2. No portion of the gain realized on such liquidation is exempt from tax because of the character of the assets deemed distributed. 3. Petitioner has failed to carry his burden to show that he was not negligent in failing to report his income from the liquidation of his sec. 1361 corporation.
1Opinion of the Court
Edward J. Prescott and Wanda D. Prescott, Petitioners v. Commissioner of Internal Revenue, Respondent
Prescott v. Commissioner
Docket No. 3141-73
United States Tax Court
66 T.C. 128; 1976 U.S. Tax Ct. LEXIS 122;
April 21, 1976, Filed
Decision will be entered under Rule 155.
In 1954 petitioner elected to have his sole proprietorship taxed as a corporation under sec. 1361. Such election terminated by operation of law on Jan. 1, 1969. Held:
1. Petitioner is deemed to have received the assets of his business enterprise in a complete corporate liquidation on Jan. 1, 1969.
2. No portion of the gain realized…
2Cases cited19 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Pollock v. Farmers' Loan & Trust Co.Supreme Court of the United States · 1895
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Willcutts v. BunnSupreme Court of the United States · 1931
14 more not listed; retrieve them via the Exa API.