Union Texas International Corporation, f.k.a. Union Texas Petroleum Corporation - Page 18

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          actual knowledge of the merger, but also had the means by which              
          respondent's WPT agents could have readily acquired such                     
          knowledge.  Southwestern Inv. Co. v. Commissioner, supra.                    
               In Paramount Warrior, Inc. v. Commissioner, T.C. Memo. 1976-            
          400, affd. without published opinion 608 F.2d 522 (5th Cir.                  
          1979), a case which is in many respects similar to the instant               
          case, we declined to decide whether the notification of a merger             
          in correspondence with one of respondent's service centers, or in            
          a parent company's consolidated return, constituted sufficient               
          knowledge on the part of respondent, because we found as a fact              
          that the field agents involved with the examination had actual               
          knowledge that the corporation, on whose behalf the Forms 872                
          were signed, had merged out of existence. Id.  In the instant                
          case, we are faced with precisely the question deferred in                   
          Paramount Warrior.                                                           
               Energy asserts that the two groups of documents filed with              
          respondent's Austin Service Center should be considered notice of            
          New Petroleum's dissolution, and therefore such knowledge should             
          be attributable to the WPT agents who conducted the examination              
          and who drafted the last three Forms 872.  The first group of                
          documents on which Energy relies consists of the 1991                        
          consolidated Form 1120 filed by Holdings along with the merger               
          documents attached thereto.  The second group of documents                   
          consists of the 1991 employment tax returns (Forms 940 and 941)              
          filed in New Petroleum's name. Energy argues that the WPT agents             




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