United States Tax Court February 6, 1986, Docket No. 9428-83 (Clark v. Commissioner)

lead-opinion

TANNENWALD, Judge:

Respondent determined a deficiency in petitioners’ Federal income taxes for the taxable year 1979 of $972,504.74. The sole issue for decision is whether the receipt by petitioners of cash (boot) as partial consideration under a plan of reorganization pursuant to sec. 368(a)(1)(A) and (a)(2)(D),1 should be treated as a dividend pursuant to sec.