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Elvin received are to be treated as income to Elvin; and (4)
whether Elvin and YOC are liable for the fraud and other
additions to tax, and if so which adjustments are attributable to
fraud.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
At the time the petitions were filed, Elvin resided in and
YOC maintained its principal place of business in St. Augustine,
Florida.
In 1974, Elvin formed YOC, an Oldsmobile, Cadillac, and
Nissan automobile dealership. From 1983 through 1986, Elvin
owned 51 percent and Herbert H. Swisher (Swisher) owned 49
percent of YOC's outstanding stock. Elvin was president, Elvin's
wife Kelley Yarbrough (Mrs. Yarbrough) was vice president, and
Swisher was secretary-treasurer of YOC. Elvin and Swisher were
apparently the only directors of YOC. In 1989, Swisher sold to
Elvin all of his YOC stock, and Elvin thereafter owned 100
percent of the outstanding YOC stock. Swisher died on May 4,
1990.
During the relevant years, Elvin was in charge of day-to-day
and overall operations of YOC. Swisher was merely a passive
investor in YOC.
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