- 8 - corporations' 1988 Federal income tax returns. These statements were entitled "Statement Re Liquidation Under IRC Section 337" and contained the following representations: (1) A statement that the board of directors adopted a resolution recommending the complete liquidation and dissolution of each corporation in accordance with "the Plan"; (2) a statement authorizing and directing the holding of a special meeting of the shareholders to vote on the Plan; (3) a statement that, following shareholder adoption, the corporation will cease doing business and will sell its assets, discharge its liabilities, and distribute the residue pro rata to the shareholders; and (4) a statement that each corporation was to be dissolved as soon thereafter as practicable. Petitioner filed a Form 966 (Corporate Dissolution or Liquidation) for DHF but did not file a Form 966 for FSRC. The certificate of dissolution for FSRC was filed on July 6, 1989. LPRC paid the dissolution fee of FSRC. At trial, petitioner conceded that he intended to liquidate DHF. The 1988 Federal income tax returns for FSRC and DHF report the sale of Deep Hollow Park property and the complete liquidation of FSRC and DHF. FSRC and DHF each filed a Form 1099 for taxable year 1988 reporting a liquidating distribution to petitioner in the amount of $1,206,351 and $2,943, respectively. Neither corporation filed an amended return for that year. Petitioner timely filed a Form 4868 (Application for AutomaticPage: 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