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its intangible assets to its shareholders in a liquidation; (2)
whether the corporation is liable for depreciation recapture in
the amount of $15,643 on the distribution of its tangible assets
to its shareholders in a liquidating distribution in 1992; (3)
whether Robert and Patricia DeMarta realized a capital gain of
$505,935 on the receipt of property from the corporation in a
liquidating distribution in 1992; (4) whether William R. Norwalk
realized a capital gain of $165,940 on the receipt of property
from the corporation in a liquidating distribution in 1992; (5)
whether the corporation is entitled to a deduction, reported as
consulting fees, of $40,000 for payments to the shareholders in
1992; (6) whether Robert DeMarta and William R. Norwalk are
required to report such payments, in the amounts of $23,320 and
$16,680, respectively, as dividend income; (7) whether Robert and
Patricia DeMarta are liable for an addition to tax under section
6651(a)(1)2 and an accuracy-related penalty under section 6662;
(8) whether the corporation is liable for an accuracy-related
penalty under section 6662; (9) whether William Norwalk is liable
for an accuracy-related penalty under section 6662; and (10)
whether Messrs. DeMarta and Norwalk are liable as transferees for
the corporation's 1992 Federal income tax liability.
FINDINGS OF FACT
2Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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