Hoffman v. Commissioner
United States Tax Court
1. Held, T was sole stockholder of X corporation and election filed by it as small business corporation, accompanied by T's consent, under sec. 1372, I.R.C. 1954, not to be taxed was valid and binding.
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1. Held, T was sole stockholder of X corporation and election filed by it as small business corporation, accompanied by T's consent, under sec. 1372, I.R.C. 1954, not to be taxed was valid and binding. The fact that S, prior owner of the stock, held it "in escrow" as security for the payment of X's obligation to her on a note did not constitute her a "shareholder" whose consent was required for the election. 2. Held, a series of notes given to S by X for advances to X which were embodied in the foregoing note did not constitute a second class of stock which disqualified X as a small business…
1Opinion of the Court
OPINION
Raum, Judge:
In January 1959 RMI, as a “small business corporations,” 1 filed an election under section 13122 of the Code not to be subject to income taxes. The Code had then recently been amended (Sept. 2,1958) by the addition of new sections 1371-1377,3 sometimes referred to in the aggregate as subchapter S, whereby a “small business corporation” might elect to be free of Federal income taxes with the consequence that its undistributed taxable income would in general be chargeable directly to its shareholders (sec. 1373). Such election is valid only if all the shareholders consent…
2Cases cited11 opinions
- Moore v. CommissionerCourt of Appeals for the Seventh Circuit · 1941
- Gamman v. CommissionerUnited States Tax Court · 1966
- Rupe Investment Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Lowe v. CommissionerUnited States Tax Court · 1965
- Northern Trust Co. Of Chicago v. United StatesCourt of Appeals for the Seventh Circuit · 1952
6 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- United States v. Albert J. Pirro, Jr., Anthony G. PirroCourt of Appeals for the Second Circuit · 2000
- Pacific Coast Music Jobbers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1972
- Stephen D. Pahl Louise A. Pahl v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1998
- CHM Co. v. CommissionerUnited States Tax Court · 1977
- CHM Co. v. CommissionerUnited States Tax Court · 1977
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