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II. Section 333 Election
Respondent contends that petitioners did not make an
election under section 333 and, thus, are not eligible to defer
the gain relating to MOC's liquidation. Petitioners contend that
they made a valid election under section 333 and, thus, may defer
the gain.
Congress, in 1986, repealed section 333 but provided a
transition rule that allowed certain shareholders to elect to
defer gain realized from a liquidating distribution received
before January 1, 1989. See Tax Reform Act of 1986, Pub. L. 99-
514, secs. 631(e)(3), 633(d), 100 Stat. 2085, 2273, 2278-2279, as
amended by Technical and Miscellaneous Revenue Act of 1988, Pub.
L. 100-647, sec. 1006(g), 102 Stat. 3342, 3407. The election was
required to be in writing and filed by the shareholder on Form
964, Election of Shareholder Under Section 333 Liquidation,
within 30 days after the adoption date of the liquidation plan.
See sec. 333(d); sec. 1.333-3, Income Tax Regs.
The parties agree that the Internal Revenue Service did not
receive Form 964. At trial, Mr. Cooper delineated in great
detail the circumstances under which he allegedly mailed Form
964, yet during the course of the 4-year audit he inexplicably
failed to mention any of this to the Internal Revenue Service
representatives. Mr. Buda's testimony relating to this issue
(i.e., that he signed "some forms" on a "Sunday afternoon") was
similarly unpersuasive. We conclude that petitioners did not
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