Robert D. Grossman, Jr. - Page 1

                                 T.C. Memo. 1996-452                                  

                               UNITED STATES TAX COURT                                

                       ROBERT D. GROSSMAN, JR., Petitioner v.                         
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket Nos.  20526-90, 14364-91.      Filed October 7, 1996.           

                    P, a tax attorney, effectively controlled the daily               
               operations of a group of closely held corporations (C).  The           
               corporations were owned by P’s wife (W), W’s mother, and W’s           
               brother.  In 1983 through 1986, P and W took personal                  
               vacation trips, which P caused C to pay for.  C’s payments             
               of the personal expenses of P and W were constructive                  
               dividends to W.  P and W omitted to report these                       
               constructive dividends on their 1983 through 1986 joint tax            
               returns.  The notices of deficiency for 1983 through 1988              
               were sent to P and W more than 3 years after P and W filed             
               their joint tax returns for 1983, 1984, and 1985.  R                   
               contends that many of these omissions for 1983 through 1986            
               were due to P’s fraud.  P denies the omissions, denies                 
               fraud, and contends that, if there are deficiencies, then he           
               is entitled to innocent spouse treatment for 1986.                     
                    1.   Held: The statute of limitations does not bar the            
               assessment and collection of tax for 1985, but is a bar as             
               to 1983 and 1984.  Sec. 6501(c)(1), I.R.C. 1954.                       

Page:   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