Court Opinion

ID: 9466729
Source: CourtListenerOpinion
Date Created: 2023-08-05 01:25:51.679353+00
Date Added: 2024-06-11T17:39:55.400560
License: Public Domain

HARLINGTON WOOD, Jr., Circuit Judge,
dissenting.
As both sides of the issue are fully and fairly set forth in the majority opinion, little need be added in registering my dissent. Although I view it as a close case, I prefer in general the view of the United States Tax Court.1 In the alternative, I believe Section 482 of the Internal Revenue Code applies.
This corporation is nothing more than a few incorporating papers lying in a desk drawer of no significance except when a tax return is due. Mr. Foglesong continued to conduct his original one-man sales representative business as he always did, except he has become insulated by those incorporating papers from the taxes he should have been paying. For a subscription price of $400 for all the preferred stock, this “should-be” taxpayer accomplished, among other things, the diversion to his children of at least $8,000 of his own income for each of the four taxable years. His make-believe corporation is too transparent for me to accept for tax purposes under Section 61 of the Code. I respectfully dissent.

. 35 TCM 1309 (1976).