Jack Townsend’s Cases

Representative List of Cases Resulting in Reported Decisions:

  • Airport Grove of Polk County v. United States, 431 F.2d 739 (5th
    Cir. 1970) (multiple corporate surtax exemptions) (briefing; decided without oral
    argument).
  • American Realty Trust v. United States, 498 F.2d 1194 (4th Cir.
    1974) (sale/leaseback tax ownership case precursor to Frank Lyons) (briefing).
  • Anderson v. Commissioner, 480 F.2d 1304 (7th Cir. 1973) (taxation
    and Section 16(b) of the Securities Act) (briefing and oral argument).
  • Baumer v. United States, 37 A.F.T.R. 2d 76-1295 (N.D., Ga. 1976
    aff’d in part 580 F.2d 863 (5th Cir. 1978), on remand 518 F. Supp. 813 (1981), aff’d 605
    F.2d 1318 (5th Cir. 1982) (constructive dividend) (trial development, briefing and trial
    to judge).
  • Bob Jones University v. United States, 468 F. Supp. 890 (D. S.C.
    1978), rev’d 639 F.2d. 147 (4th Cir. 1981), aff’d 461 U.S. 574 (1983) (exempt status for
    racially discriminatory school) (trial development; left Government before trial).
  • Callan v. Commissioner, 476 F.2d 509 (9th Cir. 1973) (personal
    holding company tax) (briefing and oral argument).
  • Columbia Products Company v. United States, 404 F. Supp. 276 (D.
    S.C. 1975) (constructive sales price for manufacturer’s excise tax – similar to §482)
    (briefing and oral argument on motion for summary judgment).
  • Cresta Corporation v. United States, 429 F.2d 1209 (2d Cir.
    1970), cert. denied 400 U.S. 1008 (1971) (corporate reorganization and §367) (preparation
    of Government brief in opposition to petition for certiorari).
  • Demerjian v. Commissioner, 457 F.2d 1 (3rd Cir. 1972) (like-kind
    exchange) (briefing and oral argument).
  • Dennis v. Commissioner, 473 F.2d 274 (5th Cir. 1973) (capital
    gain/ordinary income on collection of note) (briefing and oral argument).
  • Diamond v. Commissioner, 492 F.2d 286 (7th Cir. 1974) (receipt of
    partnership profits interest as taxable income) (briefing and oral argument).
  • Economy Finance Company v. United States, 501 F.2d 466 (7th Cir.
    1974), cert. denied 420 U.S. 947 (1974) (life insurance company qualification) (briefing
    and oral argument).
  • Fletcher v. United States, 436 F.2d 413 (7th Cir. 1971) (option
    or sales contract issue) (briefing and oral argument).
  • First National Bank of South Carolina v. United States, 413 F.
    Supp. 398 (D. S.C. 1976), aff’d 55 (bank credit card start up issue-capital or current
    expense) (briefing and oral argument on motion for summary judgment).
  • Fort Hamilton Manor, Inc. v. Commissioner, 445 F.2d 879 (3rd Cir.
    1971) (like-kind replacement) (briefing and oral argument).
  • Gant v. United States, 441 F.2d 1131 (5th Cir. 1971) (application
    of mitigation provisions) (briefing and oral argument).
  • Grinstead v. United States, 447 F.2d 937 (7th Cir. 1971) (widow
    bonus case; government appeal) (briefing and oral argument)
  • Goldsboro Christian Schools v. United States, 436 F. Supp. 1314
    (E.D. N.C. 1977), aff’d 644 F.2d 879 (4th Cir. 1981), aff’d 461 U.S. 574 (1983) (exempt
    status for racially discriminatory school; companion case to Bob Jones University) (trial
    development, briefing on cross-motions for summary judgment).
  • Johnson, Drake & Piper, Inc. v. United States, 483 F.2d 682
    (8th Cir. 1973) (percentage of completion method of accounting) (briefing and oral
    argument).
  • Kahn Est. v. Commissioner, 499 F.2d 1186 (2d Cir. 1974)
    (partnership issues) (briefing and oral argument).
  • Kansas Sand and Concrete, Inc. v. United States, 462 F.2d 805
    (10th Cir. 1972) (subsidiary merger as liquidation) (briefing and oral argument).
  • Kent v. Northern California Regional Office of Am. Friends Service
    Committee
    , 497 F.2d 1325 (9th Cir. 1974) (creative attempt through interpleader action
    to contest validity of Vietnam War) (briefing and oral argument)
  • Legg v. Commissioner, 496 F.2d 1179 (9th Cir. 1974) (installment
    sale note disposition) (briefing).
  • Liberty Loan Corporation v. United States, 498 F.2d 225 (8th Cir.
    1974) (§482 issue) (briefing and oral argument; preparation of brief in opposition to
    petition for certiorari).
  • Lung v. O’Chesky, 385 F. Supp. 928 (D. N.M. 1973), aff’d 414 U.S.
    802 (1973) (preparation of motion to affirm in Supreme Court on direct appeal from
    district court proceeding).
  • United States v. Malnik, 489 F.2d 682 (5th Cir. 1974) cert.
    denied 419 U.S. 826 (1974) (summons enforcement Fifth Amendment issue) (briefing and oral
    argument; preparation of brief in opposition to petition for certiorari).
  • Massell v. United States, 412 F. Supp. 398 (N.D. Ga. 1976)
    (reorganization issue) (trial development; briefing on cross motions for summary
    judgment).
  • McQueen v. Bullock, et al, 907 F.2d 1544 (1990), cert. denied,
    ____ U.S. ___, 111 S.Ct. 1308 (1991) (suit for injunctive and other relief against federal
    and state tax authorities; trial, appellate and Supreme Court representation).
  • Mid-America Industries, Inc. v. United States, 477 F.2d 1029 (8th
    Cir. 1973) (multiple corporate surtax issue) (briefing).
  • Miles Production Co. v. Commissioner, 457 F.2d 945 (5th Cir.
    1982)
  • Morris Est. v. Commissioner, 454 F.2d 208 (4th Cir. 1972)
    (like-kind exchange replacement by executor) (briefing and oral argument).
  • Northern Natural Gas Company v. United States, 470 F.2d 1107 (8th
    Cir. 1973) cert. denied 412 U.S. 939 (1973) (residual method allocation of lump sum
    purchase price) (briefing and oral argument; preparation of brief in opposition to
    petition for certiorari).
  • Pope & Talbot, Inc. v. Commissioner, 515 F.2d 155 (9th Cir.
    1975) (capital gains on sale or timber; excess capital gains phenomenon) (briefing).
  • Preece v. Commissioner, 95 T.C. No. 41 (1990) (application of
    residency and sourcing rules under Mirror Code of the Commonwealth of the Northern Mariana
    Islands) (Pre-trial development and Motion for Summary Judgment) (preparation of briefs
    and oral argument; case ultimately concluded by settlement).
  • Rickey v. Commissioner, 502 F.2d 748 (9th Cir. 1974) (installment
    method issue) (argued)
  • Safway Steel Scaffolds Company of Georgia v. United States, 39
    A.F.T.R. 2d 77-396 (N.D. Ga. 1976), aff’d 590 F.2d 1360 (5th Cir. 1979) (deductibility of
    rental in historic non-arm’s length transaction) (briefing and trial to judge).
  • Sammons v. United States, 433 F.2d 728 (5th Cir. 1970), cert.
    denied 402 U.S. 945 (1971) (constructive dividend on intercompany sale, analogous to §
    482 case) (briefing and oral argument; preparation of brief in opposition to petition for
    certiorari).
  • Shanahan v. United States, 447 F.2d 1082 (10th Cir. 1971)
    (imputed interest) (briefing and oral argument).
  • Spartan Petroleum Company v. United States, 437 F. Supp. 753 (D.
    S.C. 1977) (cancellation of indebtedness/proceeds of sale) (trial development and briefing
    on cross-motions for summary judgment).
  • Stafford v. United States, 435 F. Supp. 1036 (M.D. Ga. 1977),
    rev’d 611 F.2d 990 (5th Cir. 1980), on remand, 552 F. Supp. 311 (M.D. Ga. 1982) rev’d 727
    F.2d 1043 (11th Cir. 1984) (taxability of promoter’s receipt of partnership interest for
    services) (original trial development and briefing on cross motions for summary judgment).
  • Standard Oil Company v. Commissioner, 465 F.2d 246 (7th Cir.
    1972) (capital gains or ordinary income on major oil mineral transaction) (briefing and
    oral argument).
  • Superior Life Insurance Company, 462 F.2d 945 (4th Cir. 1972)
    (life insurance company qualification) (briefing and oral argument).
  • Thomasville Automotive Parts v. United States, 429 F. Supp. 133
    (M.D. Ga. 1977) (constructive sales price for manufacturer’s excise tax (similar to
    §482)) (briefing and trial).
  • United States v. Stein, 541 F.3d 130 (2d Cir. 2008)
    (Dismissal of Townsend client, among others in largest tax shelter case ever; see Wikipedia entry
    here)
  • Stein v. KPMG, LLP, 486 F.3d 753 (2d Cir. 2007)
  • United States v. Stein, 495 F. Supp. 2d 390 (S.D.N.Y.
    2007)
  • United States v. Stein, 482 F. Supp. 2d 360 (S.D.N.Y.
    2007)
  • United States v. Stein, 463 F. Supp. 2d 459 (S.D.N.Y.
    2006)
  • United States v. Stein, 452 F. Supp. 2d 230 (S.D.N.Y.
    2006)
  • United States v. Stein, 440 F. Supp. 2d 315 (S.D.N.Y.
    2006)
  • United States v. Stein, 435 F. Supp. 2d 330 (S.D.N.Y.
    2006)
  • United States v. Stein, 429 F. Supp. 2d 633 (S.D.N.Y.
    2006)
  • United States v. Stein, 428 F. Supp. 2d 138 (S.D.N.Y.
    2006)
  • United States v. Stein, 424 F. Supp. 2d 720 (S.D.N.Y.
    2006)
  • Lettie Pate Whitehead Foundation v. United States. 39 A.F.T.R. 2d
    77-931 (N.D. Ga. 1977), aff’d 606 F.2d 534 (5th Cir. 1979) (deductibility of distribution
    fees) (trial development and trial briefing on fully stipulated case).
  • Wiebusch v. Commissioner, 487 F.2d 515 (8th Cir. 1973)
    (liabilities in excess of basis in tax-free transaction; subchapter S loss pass-through)
    (briefing).

Other Matters Handled Without Reported Decision:

  • Miscellaneous civil tax cases in the Tax Court, the United States
    District Court and the Claims Court which have resulted in unreported decisions or
    judgments (e.g., trials to jury) or have been settled.
  • Transfer Pricing Representation, including litigation and Competent
    Authority Representation in transfer pricing cases and strategizing as to APA’s.
  • Miscellaneous representation in federal and state tax audits, including
    audits involving both civil adjustments and the potential for civil and criminal penalties
    that have been resolved short of a reported decision.
  • Miscellaneous federal criminal tax administrative and grand jury
    investigations. Mr. Townsend has successfully represented several prominent corporate
    executives and professionals (attorneys and accountants), including a partner in a major
    national accounting firm who was one of the targets of a major grand jury investigation
    involving transfer pricing adjustments under § 482 (Justice Department attorney leading
    the grand jury ultimately conceded that the partner should not be indicted).
  • Miscellaneous tax planning involving major transactions including
    corporate mergers and acquisitions, reorganizations (including spin-offs, etc.),
    partnerships (including advice regarding service partner and special allocations issues),
    real estate (such as ownership or financing issues in major real estate purchases and
    construction), and other significant business transactions.