- 8 -
the November 1990 meeting with the IRS. Daniell never
participated in a vote to liquidate ACT.
In 1994, Briggs and Morris pleaded guilty to and were
sentenced for violations of 26 U.S.C. sec. 7207 (1988) for false
statements in income tax returns.
ULTIMATE FINDINGS OF FACT
Petitioner did not adopt a plan of liquidation prior to or
on the sale date of its assets.
Petitioner was liable for the tax on the gain on the sale of
its assets.
At the time that petitioner's 1988 Form 1120 tax return was
due, officers of petitioner knew they were liable for the tax on
the gain from the sale.
Petitioner filed a false 1988 Form 1120 tax return with the
IRS that did not report the gain with the intent to evade a tax
known to be owing.
OPINION
Petitioner asserts that it had adopted an informal
liquidation plan on or before the sale date of its assets and,
therefore, the $405,776 gain that was realized on the JSL sale
was nontaxable. Petitioner admits that it did not adopt a formal
liquidation plan because the minutes attached to the return were
created after the sale, backdated, and contained false
information.
Page: 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