In McLaulin v. Commr., 276 F.3d 1269 (11th Cir. 2001), a parent corporation acquired control of a subsidiary corporation within the 5 year window specified in Code §355(b)(2)(D), by virtue of the subsidiary corporation's redemption of the stock of another shareholder. The other shareholder’s interest in the subsidiary before the redemption exceeded 20%. Gain was recognized on the redemption and the active business requirement of Code §355(a)(1)(C) was not met.
Below is a chart of the case and a PDF of the case can be found here.