Magdy S. Ellabban - Page 3

                                        - 3 -                                         

                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          A.   Petitioner                                                             
               Petitioner lived in Bellerose, New York, when he filed his             
          petition.  Petitioner was Elan’s president.  His former spouse              
          kept Elan’s books and records.                                              
               Petitioner had checking, savings, and credit accounts at               
          Chemical Bank in 1990.  He had an American Express card in 1990.            
               Petitioner and his former spouse were divorced in March                
          1990.  Petitioner did not file a Federal income tax return for              
          1990.                                                                       
          B.   Elan Leather Corp.                                                     
               Elan was formed in 1984 or 1985.  Emile Wahba (Wahba) has              
          been Elan’s accountant and tax preparer since 1985 or 1986, or              
          about a year after Elan was incorporated.  Wahba prepared and               
          Elan filed New York City and State corporate income tax returns             
          for 1985.  Petitioner’s former spouse signed the State and city             
          returns with his approval.  On the returns, Elan reported that              
          petitioner was its only officer and stockholder who owned more              
          than 5 percent of its issued capital stock and who received any             
          compensation.                                                               
               Wahba filed an S corporation election for Elan before 1989.            
          Wahba prepared Elan’s 1989 Form 1120S, U.S. Income Tax Return for           
          an S Corporation, which petitioner signed.  On it, Elan reported            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011