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stock certificates were blank. Wahba testified that he did not
help to incorporate Elan, or help to maintain Elan's corporate
minutes and stock register, or to transfer stock certificates.
Wahba prepared Elan's New York City and State tax returns
for 1985, which show that petitioner was the only shareholder who
owned more than 5 percent of Elan’s stock. Wahba could not
explain why he did not report petitioner’s former spouse as a
shareholder owning more than 5 percent of Elan's stock as
required on those returns.
Petitioner points out that Elan’s 1989 corporate income tax
return, which Wahba prepared, and an undated application by Elan
to the State Insurance Fund for a disability insurance policy
that petitioner signed state that both petitioner and his former
spouse owned Elan. However, based on all of the evidence in this
case, we are not convinced that petitioner owned only 50 percent
of the stock of Elan in 1990. As discussed next, the $120,059 is
taxable to petitioner even if he did not own all of the stock of
Elan.
2. Whether the $120,059 Petitioner Retained Is Taxable to
Him
The $120,059 that petitioner retained is taxable to him as
an accession to wealth because he did not use it for corporate
purposes. Sec. 61(a); Commissioner v. Glenshaw Glass Co., 348
U.S. 426, 429-431 (1955); Getty v. Commissioner, 913 F.2d 1486,
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