Koufman v. Commissioner’s Empirical Analysis

Citation profile

1 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 1 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““[T]he issue of whether shareholder withdrawals are bona fide loans is a question of fact which requires consideration and evaluation of the surrounding circumstances. ... In making such examination, it is of controlling significance to inquire whether the parties intended to create bona fide indebtedness which the shareholder intended to repay and which the corporation intended to collect. ... In discerning the parties’ intention, the courts have relied on objective indicia, particularly when, as here, the withdrawals are made by a dominant or sole shareholder. . . . One significant objective criterion is whether the shareholder, at the time of the advance, could reasonably have expected to repay it. . . . It is also helpful to inquire whether evidences of indebtedness were executed, whether security was given for the withdrawals, and whether interest was paid. . . . The courts have also considered whether the indebtedness was due by a date certain, whether there was a fixed total limit on a shareholder’s borrowings, and the amount of repayments made. . . . However, it must be kept in mind that the presence or absence of any of these indicia is not determinative; they are just helpful guideposts for the trier of fact who must determine, based upon all of the evidence, the crucial fact of whether repayment was actually intended.””

   1 later decision quote this exact passage · from the majority
   e.g. Koufman v. New England Merchants National Bank