AJF Transportation Consultants, Inc., et al. - Page 2

                                        - 2 -2                                        

                    1.   Held: The period of assessment is unlimited                  
               because J and F filed fraudulent tax returns.  Sec.                    
               6501(c)(1), I.R.C.                                                     
                    2.   Held, further, the diverted funds were                       
               constructive dividends and taxable to F in the manner                  
               provided by secs. 301(c) and 316(a), I.R.C.                            
                    3.   Held, further, the diverted funds were properly              
               includable in J's income.  Sec. 61(a), I.R.C.; Commissioner            
               v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).                       
                    4.   Held, further, J and F are liable for additions to           
               tax and penalties under secs. 6653(b) and 6663, I.R.C.                 
                    5.   Held, further, J is liable for additions to tax              
               under sec. 6651(a), I.R.C.                                             

               Gary D. Borek, for petitioners.                                        
               Jerome F. Warner and Raymond M. Boulanger, for respondent.             


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               NIMS, Judge:  Respondent determined deficiencies, additions            
          to tax, and penalties for 1988, 1989, and 1990 with respect to              
          petitioner AJF Transportation Consultants, Inc.'s (AJF) Federal             
          income taxes as follows:                                                    
                                        Additions to Tax         Penalty              
          Year      Deficiency     Sec. 6653(b)   Sec. 6651(a)   Sec. 6663            
          1988      $90,137        $45,751.50     $7,284                              
          1989      66,240                        16,560         $36,099.75           
          1990      46,694                        11,674         32,841.75            
               Respondent also determined deficiencies, an addition to tax,           
          and penalties for 1988 and 1989 with respect to petitioners                 
          Anthony J. and Carol L. Ferrentino's Federal income taxes, and              
          for 1990 with respect to petitioner Anthony J. Ferrentino's                 
          Federal income taxes, as follows:                                           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011