Tribune Company, as Agent of and Successor by Merger to the Former The Times Mirror Company, Itself and Its Consolidated Subsidiaries - Page 2

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                           SUPPLEMENTAL MEMORANDUM OPINION                            

               COHEN, Judge:  The supplemental opinion resolves the issue             
          left undecided by our opinion in Tribune Co. v. Commissioner, 125           
          T.C. 110 (2005) (the Bender opinion).  Pursuant to agreement of             
          the parties, the issue involving the so-called “Mosby                       
          transaction” is submitted fully stipulated and decided on the               
          basis of the Bender opinion.  The findings of fact set forth in             
          the Bender opinion are incorporated herein by this reference as             
          if fully set forth.  Only those facts unique to the Mosby                   
          transaction are included in this supplemental opinion.  Unless              
          otherwise indicated, all section references are to the Internal             
          Revenue Code in effect for the year in issue, and all Rule                  
          references are to the Tax Court Rules of Practice and Procedure.            
                                     Background                                       
               In 1998, in a transaction separate from but similar to the             
          Bender transaction, Times Mirror Co., Inc. (Times Mirror),                  
          exchanged all of the outstanding stock of Mosby, Inc. (Mosby), in           
          the “Mosby transaction”.  Times Mirror used the “corporate joint            
          venture” structure to effectuate both the Bender and Mosby                  
          transactions.  However, in contrast to the Bender transaction,              
          before Times Mirror transferred Mosby stock, Mosby distributed              
          certain assets to Times Mirror.                                             
               Times Mirror treated the exchanges of the Bender and Mosby             
          stock as tax-free reorganizations within the meaning of section             





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