- 2 - The issues for decision are whether petitioner is taxable on a gain on the sale of assets or whether it adopted a plan of complete liquidation on or before the sale date of the assets in accordance with the requirements of section 337 and whether petitioner is liable for the additions to tax determined by respondent. FINDINGS OF FACT Some of the facts have been stipulated, and the stipulated facts are incorporated in our findings by this reference. Petitioner had its principal place of business in Florida at the time the petition was filed. During the year in issue, petitioner was in the business of providing cable TV service. Association Cable TV (ACT) was incorporated in 1985. The corporation was owned equally by four shareholders: Franklin W. Briggs (Briggs), John L. Daniell (Daniell), Jimmy D. Morris (Morris), and Mike Gay (Gay). The corporation was formed to provide cable TV services to a beach resort. Subsequently, ACT pursued and received franchise rights to provide cable TV services to Panama City Beach, Florida. The franchise for Panama City Beach put ACT in competition with Jones Spacelink, Ltd. (JSL), which also provided cable TV services in the area. In October 1988, JSL expressed an interest in purchasing ACT assets, which consisted of franchise rights. The shareholders of ACT held an 11:00 a.m. meeting on October 24, 1988, to discuss the offer from JSL and other ACT business. The meeting was held atPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011