Bernard D. Spector v. Commissioner of Internal Revenue

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that partners may effect a disposition of their interests either through sale or liquidation
• adopting Commissioner v. Danielson, 378 F.2d 771 (3d Cir. 1967), vacating and remanding 44 T.C. 549 (1965)
• recognizing taxpayer may challenge the form of his own transaction only upon presenting “proof of mistake, fraud, undue influence or any other ground that, in an action between the parties to the agreement, would be sufficient to set it aside or alter its construction”
• applying Danielson rule to conclude that a buy-out agreement carefully and intentionally structured as a liquidation was a “liquidation,” as opposed to “sale” subject to capital-gains tax
• applying Danielson rule to conclude that a buy-out agreement carefully and intentionally structured as a liquidation was a “liquidation,” as opposed to “sale” subject to capital-gains tax
• recognizing taxpayer may challenge the form of his own transaction only upon presenting “proof of mistake, fraud, undue influence or any other ground that, in an action between the parties to the agreement, would be sufficient to set it aside or alter its construction”

Source: CourtListener parenthetical corpus (CC0).