DocketNumber: Docket Nos. 904-73, 6592-74.
Citation Numbers: 45 T.C.M. 791, 1983 Tax Ct. Memo LEXIS 682, 1983 T.C. Memo. 103
Filed Date: 2/17/1983
Status: Non-Precedential
Modified Date: 11/21/2020
*682 V and I were consolidated in 1968. The Commissioner determined deficiencies against V for certain preconsolidation years and against I for certain postconsolidation years. Both V and I filed petitions in this Court. Thereafter, V filed a petition in bankruptcy and was adjudicated a bankrupt. The IRS filed a proof of claim in the bankruptcy proceeding including the deficiencies determined against V and I. The IRS claim was allowed in full. The determination of the bankruptcy court was not appealed and has become final.
MEMORANDUM OPINION
SIMPSON,
Docket No. | Petitioner | Period Ending | Deficiency |
904-73 | Valley Die Cast Corporation | 5/31/65 | $132,368.31 |
5/31/66 | 25,438.49 | ||
5/31/67 | 74,262.00 | ||
1/31/68 | 149,920.28 | ||
6592-74 | Intercontinental Industries, | 4/1/67 to 7/31/67 | 886.74 |
Inc. and Consolidated | 7/31/68 | 483,763.71 | |
Subsidiaries | 7/31/69 | 1,029,192.64 |
*684 Many of the issues in this case have been settled; but we must now decide what action to take with respect to cross motions for summary judgment in docket No. 904-73 and with respect to the Commissioner's motion for partial summary judgment in docket No. 6592-74. The decision turns on whether this Court has jurisdiction over these dockets.
The petitioner, Valley Die Cast Corporation (Valley Die), was a Michigan corporation with its principal office in Detroit, Mich., at the time it filed its petition in this case. Valley Die filed its Federal corporate income tax returns for the taxable years ended May 31, 1965, May 31, 1966, May 31, 1967, and January 31, 1968, with the District Director of Internal Revenue, Detroit, Mich. The petitioner, Intercontinental Industries, Inc. (Intercontinental), was a Delaware corporation with its principal office in Dallas, Tex., at the time it filed its petition in this case. On February 9, 1968, Intercontinental acquired all of the outstanding stock of Valley Die. For its taxable years ending July 31, 1967, July 31, 1968, and July 31, 1969, Intercontinental filed consolidated Federal corporate income tax returns with the District Director of*685 Internal Revenue, Dallas, Tex. For the taxable years ending after January 31, 1968, such returns included the income of Valley Die.
On November 6, 1972, the Commissioner issued his notice of deficiency to Valley Die; and on February 5, 1973, Valley Die filed a petition with this Court (Docket No. 904-73). On May 3, 1974, the Commissioner issued his notice of deficiency to Intercontinental; and on July 31, 1974, Intercontinental filed a petition with this Court (Docket No. 6592-74).
On August 1, 1974, a petition in bankruptcy was filed by or against Valley Die in the U.S. District Court for the Eastern District of Michigan, and on July 25, 1975, Valley Die was adjudicated a bankrupt. On November 3, 1975, the Internal Revenue Service filed a proof of claim in the bankruptcy proceeding. Such proof of claim amounted to $1,909,064.11 and included all of the deficiencies determined in both docket No. 904-73 and docket No. 6592-74 together with FUTA, FICA, and withholding taxes of $13,231.94. Valley Die did not contest its liability in the bankruptcy proceeding, and the IRS claim was allowed in full by the trustee. By an order dated January 30, 1979, the court approved the trustee's*686 report and directed him to distribute Valley Die's remaining assets which, at that time, amounted to only $8,099.18. Specifically, the court directed the trustee to pay the IRS a total of $311.46 for withholding and FICA taxes. In June 1979, the estate was closed. The judgment of such court was not appealed and has become final.
On July 14, 1982, Valley Die made a timely motion for summary judgment pursuant to
In their motions, the parties have each requested that this Court rule that the doctrine of res judicata applies to preclude our redetermination of the deficiencies pertaining to Valley Die, since the matters were previoiusly determined in the bankruptcy proceeding.A motion for summary judgment is granted only when it is shown that "there is no genuine issue as to any material fact and that a decision may be rendered as a matter of law."
The jurisdiction of this Court is properly invoked upon the timely filing of a petition (
*690 In
We find
Since we have concluded that we have no jurisdiction over the matters considered and adjudicated by the bankruptcy court with respect to Valley Die, we will also deny the Commissioner's motion for partial summary judgment in docket No. 6592-74. However, since the bankruptcy proceeding did not concern the tax liability of Intercontinental, we do have jurisdiction to consider the tax liabilities of that company. As the parties have agreed to settle all of the issues in docket No. 6592-74, we will abide by the terms of such settlement. To reflect these conclusions,
1. Under the 1978 changes in the bankruptcy law, the filing of a petition in bankruptcy causes an automatic stay of institution or continuation of a proceeding before the Tax Court concerning the debtor.
Emma R. Dorl v. Commissioner of Internal Revenue , 507 F.2d 406 ( 1974 )
Camp v. United States , 44 F.2d 126 ( 1930 )
Ohio Steel Foundry Co. v. United States , 38 F.2d 144 ( 1930 )
Main-Hammond Land Trust v. Commissioner of Internal Revenue , 200 F.2d 308 ( 1952 )