Zabolotny v. Commissioner
United States Tax Court
Petitioners owned a tract of land in North Dakota which they used for farming purposes. Oil was discovered under the land. Petitioners leased the mineral rights to Gulf Oil Corporation in return for sizable royalties. On May 20, 1981, petitioners incorporated their farming operation on the land. The corporation established an Employee Stock Ownership Plan (ESOP) for its employees.
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Petitioners owned a tract of land in North Dakota which they used for farming purposes. Oil was discovered under the land. Petitioners leased the mineral rights to Gulf Oil Corporation in return for sizable royalties. On May 20, 1981, petitioners incorporated their farming operation on the land. The corporation established an Employee Stock Ownership Plan (ESOP) for its employees. Petitioners then sold their initial interest in the land to the ESOP in exchange for payments to be received from a joint and survivor annuity plan established by the ESOP for the benefit of petitioners. Respondent…
1Opinion of the Court
DRENNEN, Judge:
In notices of deficiency issued to both petitioners, respondent determined identical deficiencies in each of the petitioners’ Federal excise taxes as follows:
Anton Zabolotny
Year
1981
1982
1983
1984
1985
1986
First-tier (initial) deficiency $324,095.75 324,095.75 324,095.75 324,095.75 324,095.75 324,095.75
Additions to tax sec. 66511 $81,023.94 81,023.94 81,023.94 81,023.94 264,819.15
For taxable year ended November 26, 1986, respondent determined a second-tier deficiency of $6,481,915.
Bemel Zabolotny
First-tier (initial) deficiency
Additions to tax
Year
1981
1982
1983
1984
1985
1986
$324,095.75
324…
2Cases cited12 opinions
- United States v. BoyleSupreme Court of the United States · 1985
- Logan Lumber Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Adams v. CommissionerUnited States Tax Court · 1979
- Adams v. CommissionerUnited States Tax Court · 1978
- West Coast Ice Co. v. CommissionerUnited States Tax Court · 1968
7 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Estate of La Meres v. Comm'rUnited States Tax Court · 1992
- Janpol v. CommissionerUnited States Tax Court · 1994
- Bowen v. CommissionerUnited States Tax Court · 2001
- Bray v. Comm'rUnited States Tax Court · 2008
- Estate of La Meres v. Comm'rUnited States Tax Court · 1992
6 more not listed; retrieve them via the Exa API.