Max M. and Joan E. Greenberg - Page 2

                                         -2-                                          
          as respondent contends, or as a return of capital, as petitioners           
          contend).  In the event we accept respondent’s characterization of          
          these payments, then we must further decide whether petitioners are         
          liable for the section 6662(a) accuracy-related penalty.                    
               All section references are to the Internal Revenue Code for            
          the year in issue, all Rule references are to the Tax Court Rules           
          of Practice and Procedure, and all dollar amounts have been                 
          rounded.                                                                    
               Some of the facts have been stipulated and are found                   
          accordingly.  The stipulation of facts and the attached exhibits            
          are incorporated herein by this reference.                                  
                                  FINDINGS OF FACT                                    
               At the time they filed their petition, petitioners Max M. and          
          Joan E. Greenberg, husband and wife, resided in San Diego,                  
          California.  They timely filed a joint Federal income tax return            
          for 1990.                                                                   
          Pioneer Mortgage, Inc.                                                      
               Pioneer Mortgage, Inc. (Pioneer Mortgage or the company) was           
          incorporated by Morrie Naiman (M. Naiman) on July 12, 1967.  In             
          1975, M. Naiman died; thereafter his nephew, Gary Naiman (G.                
          Naiman) continued the business previously conducted by his uncle            
          (viz, the secondary mortgage market in the San Diego area) using            
          the Pioneer Mortgage name for several interrelated companies.1  G.          

               1    G. Naiman operated and controlled the following                   
                                                             (continued...)           




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

Last modified: May 25, 2011