Tax Cases
Highlights of various tax cases.
- Albrecht v. United States
- Ms. Albrecht, age 83, transferred a significant number of shares of Beneficial Finance Company to her family members and died within three years.
- Benson v. Commissioner
- Mr. Benson established a ten-year trust and transferred to it a building which his corporation then leased.
- Bielfeldt v. Commissioner of IRS
- Mr. Bielfeldt and his partnership claimed to be a dealer rather than an investor with respect to government securities and were thus entitled to ordinary vs. capital losses generated from his activities.
- Brady v. United States
- Mr. Brady, a self-employed contractor, engaged individuals to provide construction services on his behalf as independent contractors.
- Custom Builders, Inc. v. Commissioner of the IRS
- Custom Builders adopted a defined benefit plan. The plan actuary determined the plan’s normal cost using an interest rate assumption of 5%.
- D.J. Mahoney Co. v. Commissioner
- The Internal Revenue Service contended that the taxpayer had accumulated profits in excess of accumulations
- DMI Inc. v. Commissioner
- The taxpayer paid its principal shareholder and key employee compensation determined by reference to the year-end profits of the employer-corporation.
- Estate of Sauder v. Commissioner
- The decedent died owning multiple classes of voting and non-voting preferred; each class carried non-cumulative dividends.
- Fort Transfer Co. v. United States
- The taxpayer paid its principal shareholder and key employee compensation determined by reference to the year-end profits of the employer-corporation.
- Hartman v. United States
- Mrs. Hartmann made gifts of shares of a close-held corporation to her son and grandchildren.
- Hillyer Excavating Service v. Commissioner
- The taxpayer contended that the subject transaction qualified for “like-kind” treatment given the use of a qualified intermediary.
- Jerome Mirza & Associates, Ltd. v. United States
- The taxpayer, a professional corporation established by a well-regarded personal injury lawyer, established a defined benefit pension plan.
- Lloyd Schumacher Chevrolet-Buick, Inc. v. United States
- The taxpayer paid its principal shareholder and key employee compensation determined by reference to the year-end profits of the employer-corporation.
- Medical Radiological Group, P.C. v. Commsissioner
- The taxpayer established multiple defined benefit pension plans, one for each of its shareholders, with varying normal retirement date provisions.
- Mueller v. Commissioner
- The taxpayer successfully concluded an Age Discrimination case and bargained for and received a single premium deferred variable annuity, the ownership of which remains in the defendant.
- People v. O'Neill
- Mr. O’Neill contended that the then current Illinois Personal Property Tax was invalid
- St. John v. United States
- The taxpayer sold interests in a general partnership formed to construct a nursing home and received a subordinated profits interest in the partnership.
- United States v. Commercial National Bank of Peoria
- The taxpayer died owning shares of the corporation. The value of the shares was contested by the decedent’s estate and the Internal Revenue Service.
- United States v. Hemme
- Prior to 1977, a taxpayer was allowed a lifetime exemption of $30,000 to be deducted from amounts otherwise taxable, which exemption could be claimed anytime during the taxpayer’s lifetime.
- Yeomans Distributing Co. v. United States
- The taxpayer established a non-qualified deferred compensation plan for the benefit of its controlling shareholder, the father of one of its minority shareholders, and thereafter, for the benefit of the father’s surviving spouse.
