Patriotdiscussions wrote:Wrong question? Really? Lol
Yes. Wrong question. Really.
And, no not "Lol." You're not "laughing out loud." You're in way over your head.
The subject at hand -- the definition of "state" in section 7701 of the Internal Revenue Code -- does not require that we provide you with some sort of heavy duty explanation of "statutory presumptions in regard to due notice" or "what the court says about it." This is not complicated.
Any psychologically normal person of normal intelligence can understand that statute. The fact that you are trying to make a mountain out of this mole hill simply indicates that you have been reading the usual tax protester gibberish, and that you are a TROLL.
THIS IS THE EASY PART OF TAX LAW, GRASSHOPPER. The fact that you are pretending to agonize over the definition of "state" as used in section 7701 is illustrative of your lack of intelligence and your lack of intellectual honesty.
You think the definition of "state" is complicated?
Here, read this sentence:
For purposes of subsection (a)(1), a corporation shall not be considered to be a collapsible corporation with respect to any sale or exchange of stock of the corporation by a shareholder, if, at the time of such sale or exchange, the sum of – [ . . . ] the net unrealized appreciation in subsection (e) assets of the corporation (as defined in paragraph (5)(A)), plus [ . . . ] if the shareholder owns more than 5 percent in value of the outstanding stock of the corporation, the net unrealized appreciation in assets of the corporation (other than assets described in subparagraph (A)) which would be subsection (e) assets under clauses (i) and (iii) of paragraph (5)(A) if the shareholder owned more than 20 percent in value of such stock, plus [ . . . ] if the shareholder owns more than 20 percent in value of the outstanding stock of the corporation and owns, or at any time during the preceding 3-year period owned, more than 20 percent in value of the outstanding stock of any other corporation more than 70 percent in value of the assets of which are, or were at any time during which such shareholder owned during such 3-year period more than 20 percent in value of the outstanding stock, assets similar or related in service or use to assets comprising more than 70 percent in value of the assets of the corporation, the net unrealized appreciation in assets of the corporation (other than assets described in subparagraph (A)) which would be subsection (e) assets under clauses (i) and (iii) of paragraph (5)(A) if the determination whether the property, in the hands of such shareholder, would be property gain from the sale or exchange of which would under any provision of this chapter be considered in whole or in part as ordinary income, were made – [ . . . ] by treating any sale or exchange by such shareholder of stock in such other corporation within the preceding 3-year period (but only if at the time of such sale or exchange the shareholder owned more than 20 percent in value of the outstanding stock in such other corporation) as a sale or exchange by such shareholder of his proportionate share of the assets of such other corporation, and [ . . .] by treating any liquidating sale or exchange of property by such other corporation within such 3-year period (but only if at the time of such sale or exchange the shareholder owned more than 20 percent in value of the outstanding stock in such other corporation), as a sale or exchange by such shareholder of his proportionate share of the property sold or exchanged, does not exceed an amount equal to 15 percent of the net worth of the corporation.
"My greatest fear is that the audience will beat me to the punch line." -- David Mamet