- 66 - not required, whether the redeeming corporation and the redeemed shareholder have demonstrated their intention to consummate the alleged plan in some meaningful way is an important factor. Bleily & Collishaw, Inc. v. Commissioner, supra at 757 (“Collishaw had agreed to the sale of all its shares and to the purchase price. As noted before, the fact that the agreement was not binding is not dispositive.”); Niedermeyer v. Commissioner, supra at 291 (“Petitioners could easily have changed their minds with regard to any intent to donate the preferred stock. Clearly petitioners’ decision to donate the preferred stock has not been shown to be in any way fixed or binding.”). If the taxpayer is the sole shareholder of a closely held corporation and could easily change his mind regarding the implementation of the alleged plan, this Court has demanded compelling evidence of the taxpayer’s commitment to the plan before it will find that a firm and fixed plan existed. Niedermeyer v. Commissioner, supra at 291. If, however, the taxpayer is a shareholder of a more broadly held close corporation or a publicly held corporation, this Court’s analysis has focused primarily on the redeeming corporation’s commitment to the plan. For example, in Roebling v. Commissioner, supra at 55, a case involving the periodic redemption of a banking institution’s preferred shareholders, we stated that-- While we realize that this redemption plan was subject to the financial condition of the bank and thePage: Previous 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 Next
Last modified: May 25, 2011