Phillips v. Commissioner

Decided April 2, 1929

United States Board of Tax Appeals · decided 1929-04-02

Under section 280 of the Revenue Act of 1926 one of eleven transferees of the assets of the corporation upon liquidation who received property of a greater value than the deficiency in income and profits tax due by the corporation, is liable for payment of the entire deficiency.

Relies on Cappellini v. Commissioner · Grand Rapids Nat'l Bank v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1929-04-02

How this case has been cited

Cited by 27 later decisions (2 by the Supreme Court) — most recently October 2017 · most notably Phillips v. Commissioner (1931), Phillips v. Commissioner (1931)

2 federal appellate ·

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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¶1 *1220OPINION.

Littleton:

¶2The executors contend (1) that section 280 of the Revenue Act of 1926 is unconstitutional, and (2) if the section is constitutional, the estate of I. L. Phillips is liable for only its pro rata portion of the unpaid tax of the corporation.

¶3The first contention is disposed of by the opinion of the Board in Henry Cappellini et al., 14 B. T. A. 1269, and the second claim advanced is governed by the opinion of the Board in Grand Rapids National Bank, 15 B. T. A. 1166, in which we held that any one of several transferees of the assets of the corporation is liable for the unpaid tax of the corporation to the extent of the amount received upon liquidation. Since I. L. Phillips received property of a greater value than the amount of the- tax due by the Coombe Garment Co., the taxpayer, the Commissioner’s determination is approved.

¶4Judgment will be entered for the respondent.