entitled to a deduction as a trade or business expense of the cost of purchasing tires which it contends were for use on leased trucks; and (2) whether petitioner is liable for an accuracy- related penalty under section 66621 as determined by respondent. FINDINGS OF FACT Some of the facts have been stipulated and are found accordingly. Petitioner, Fountain Valley Transit Mix, Inc., is a California corporation. At the time of the filing of the petition in this case, petitioner maintained its principal place of business in Fountain Valley, California. Petitioner filed its Federal income tax return for its fiscal year ending June 30, 1990, with the Internal Revenue Service Center in Fresno, California. Petitioner was incorporated in June 1987 and operated a ready-mixed concrete business in southern California during its fiscal year ending June 30, 1990. Petitioner produced and delivered ready-mixed concrete to unrelated third-party contractors who had building projects in the southern California area. During its fiscal year 1990, petitioner was owned half by Mr. Kurt Caillier (Kurt Caillier) and half by Kurt Caillier's brother, Mr. Randy Caillier (Randy Caillier). In 1990, Kurt 1 All section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless otherwise indicated.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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