- 11 -- 11 -
v. Commissioner, 28 T.C. 1100, 1115 (1957), affd. 262 F.2d 150
(9th Cir. 1958).
In Zmuda v. Commissioner, supra, and in the decisions that
followed,4 the courts held that funds received by certain
offshore trusts were taxable in the year of receipt to the
taxpayers who controlled the trusts.
Petitioners herein argue that the offshore trust program in
which they participated is not distinguishable from the offshore
trust program that in Zmuda v. Commissioner, supra, was held to
constitute a sham and that was disregarded for Federal income tax
purposes. Petitioners then argue that, in light of the holdings
in Zmuda and its progeny, and under the claim of right doctrine,
the profits or funds of CCMI that, at the end of 1982, were
transferred into the offshore trusts should be treated as
constructively received by petitioners in 1982, not in 1983.
Petitioners, in other words, contend that respondent has chosen
4 See Sandvall v. Commissioner, 898 F.2d 455 (5th Cir. 1990),
affg. on consolidated appeal T.C. Memo. 1989-56 and T.C. Memo.
1989-189; Akland v. Commissioner, 767 F.2d 618 (9th Cir. 1985),
affg. T.C. Memo. 1983-249; Professional Serv. v. Commissioner, 79
T.C. 888 (1982); Spencer v. Commissioner, T.C. Memo. 1994-531;
Dahlstrom v. Commissioner, T.C. Memo. 1991-265, affd. without
published opinion 999 F.2d 1579 (5th Cir. 1993); Dahlstrom v.
Commissioner, T.C. Memo. 1991-264, affd. without published
opinion 999 F.2d 1579 (5th Cir. 1993); Able Co. v. Commissioner,
T.C. Memo. 1990-500; Denali Dental Serv. v. Commissioner, T.C.
Memo. 1989-482; Pauli v. Commissioner, T.C. Memo. 1989-481;
Melvin L. Cochran, D.D.S., Inc. v. Commissioner, T.C. Memo.
1989-102.
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