- 13 - minutes contain the following statement: "A new corporation would be formed in the State of New York and the old corporations will be dissolved." The minutes of the June 11, 1988, meeting state: "Signed was [sic] the intent to disolve [sic] both the above corporations to save taxes." In addition, petitioner's individual return for 1988 and FSRC's corporate return indicate that this intent was actually carried out. Furthermore, under identical circumstances, petitioner has conceded that he intended to liquidate DHF. Second, FSRC had a continuing purpose to liquidate; i.e., its long-running feud with Howell Township made it exceedingly difficult for FSRC to continue with its business. Finally, FSRC's actions, including selling corporate property, filing final returns, making liquidating distributions, and dissolving under state law, all unequivocally demonstrate that the corporation's activities were directed and confined to liquidating the corporation. Although he originally reported the transactions at issue as liquidations, petitioner now seeks to disavow his original form. Taxpayers are free to structure their transactions in a manner that will result in their owing the least amount of tax possible. This is the essence of effective tax planning. However, as the Supreme Court observed in Commissioner v. National Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 149 (1974): [W]hile a taxpayer is free to organize his affairs as he chooses, nevertheless, once having done so, he mustPage: 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