Venture Funding, Ltd. - Page 29

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               BEGHE, J., concurring in result and dissenting in part:                
          Judge Ruwe’s concern (see his dissenting op. p. 53) over the                
          unsatisfactory result his correct analysis seems to require and             
          my own sense that there must be more to this fully stipulated               
          case than either side chose to present has led me to review the             
          record made by the parties.  My review of the record raises such            
          troubling questions that I am impelled to set them forth, with              
          supporting references to their sources in the record and                    
          petitioner’s brief, in the face of the views of my colleagues and           
          the courts that judges must refrain from trying to tell                     
          respondent how to do his job.  See, e.g., United States v.                  
          Payner, 447 U.S. 727, 737-738 (1980).                                       
               1.  Why didn’t respondent issue statutory notices of                   
          deficiency to petitioner’s employees who received Endotronics               
          shares as compensation?1                                                    

               1 Petitioner’s brief suggests that the employees may not               
          have reported the receipt of the shares as income because the               
          shares were “letter stock” under the Federal securities laws and            
          could not be sold on the public market without a registration               
          statement for a 2-year period following receipt.  The suggestion            
          appears misplaced in two respects:  (1) It was clear at the time            
          the shares were received that letter stock is not subject to a              
          substantial risk of forfeiture under sec. 83(a) and that letter             
          stock restrictions do not postpone the receipt of income, as                
          demonstrated by the cases cited in petitioner’s brief, decided              
          prior to the receipt of the shares, see Pledger v. Commissioner,            
          641 F.2d 287 (5th Cir. 1981); Robinson v. Commissioner, T.C.                
          Memo. 1985-275; Phillippe v. Commissioner, T.C. Memo. 1982-30;              
          Cassetta v. Commissioner, T.C. Memo. 1979-384, see also Robinson            
          v. Commissioner, 82 T.C. 444, 467 (1984) (sec. 83(c)(3) is not in           
          issue here); Horwith v. Commissioner, 71 T.C. 932 (1979); Grant             
                                                             (continued...)           





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