Tax Court Rules Against Sumner Redstone In Decades Old Case

The U.S. Tax Court has recently released a decision dealing with a four-decades old dispute. “The core question in Redstone’s dispute with the Internal Revenue Service pertains to whether his 1972 transfer of stock to his children was a taxable “gift” or not.” The Tax Court decision can be read here. The Court lets him off the hook for fraud but affirms a tax deficiency of $737,625. This article discusses the history of the decades old case and some of the relations that it had with the Watergate scandal. Sumner Redstone is currently the majority stakeholder in CBS and Viacom.  There is ongoing speculation about what the future of Sumner Redstone’s media empire will be.

See Eriq Gardner, Sumner Redstone Loses to IRS in Tax Case Four Decades in the Making, The Hollywood Reporter, December 15, 2015.