TSN Liquidating Corp. v. United States

624 F.2d 1328 (1980)

From our private database of 46,500+ case briefs, written and edited by humans—never with AI.

TSN Liquidating Corp. v. United States

United States Court of Appeals for the Fifth Circuit
624 F.2d 1328 (1980)

  • Written by Robert Cane, JD

Facts

TSN Liquidating Corp. (TSN) (plaintiff) sought to sell its subsidiary, Community Life Insurance Company (Community), to Union Mutual Life Insurance Company (Union Mutual) through a sale of stock. One condition of the stock-purchase agreement between TSN and Union Mutual was that Community was to dispose of certain unwanted assets (mostly capital stock of small public companies) prior to the sale. To satisfy this condition, Community declared a dividend of the unwanted assets to be received by TSN just prior to closing the sale. TSN reported the receipt of the assets from Community as dividends on its tax return. The Internal Revenue Service (IRS) (defendant) audited TSN and treated the distribution of assets from Community to TSN as an integral part of the sale to Union Mutual, which increased TSN’s tax burden. TSN paid the additional tax, filed a claim for a refund, and brought an action against the IRS in district court. The district court found in favor of the IRS. TSN appealed to United States Court of Appeals for the Fifth Circuit.

Rule of Law

Issue

Holding and Reasoning (Randall, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,500 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership