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in pension income. On his amended return, petitioner did not
report any liquidating distributions or capital gains.
OPINION
On Schedule D of his 1988 Federal income tax return,
petitioner reported that he received distributions from FSRC and
DHF in complete liquidation of both corporations. However,
petitioner later filed an amended tax return for 1988, which
reflected petitioner's new reporting position that the amounts
received from FSRC and DHF by petitioner did not constitute
liquidating distributions. Respondent determined that FSRC and
DHF were liquidated prior to January 1, 1989, and that the
distributions from each corporation were taxable to petitioner to
the extent they exceeded petitioner's adjusted stock basis.
Because petitioner conceded that he intended to liquidate DHF, we
will focus only upon whether petitioner received a liquidating
distribution from FSRC. Petitioner argues that he never intended
to liquidate FSRC and that his characterization of the amount
received from FSRC as a liquidating distribution on his tax
return was an error. Respondent's determination is presumed
correct, and petitioner bears the burden of proving otherwise.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 331(a) provides that "Amounts received by a
shareholder in a distribution in complete liquidation of a
corporation shall be treated as in full payment in exchange for
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