- 126 -
or absence of fraud, the trier of the facts must consider the
native equipment and the training and experience of the party
charged.” Iley v. Commissioner, 19 T.C. 631, 635 (1952).
Petitioner is a practicing attorney with an LL.M. in
taxation degree from New York University. Petitioner was a
senior trial attorney in the Trial Branch of the Tax Court
Litigation Division, Office of Chief Counsel, Internal Revenue
Service, for 4 years. He has been in private practice,
specializing in tax law, for about 20 years. Petitioner is a
member of the bar of this Court.
Petitioner understands that a shareholder-taxpayer receives
a constructive dividend when a corporation in which a taxpayer
owns stock pays the personal expenses of that shareholder without
the expectation of repayment. We take judicial notice of a case
in this Court, First Teachers Investment Corp. v. Commissioner,
T.C. Memo. 1980-302, involving constructive dividends, in which
petitioner appeared as counsel for the taxpayer, and a Case
before the Court of Appeals for the Fourth Circuit, Clevenger v.
Commissioner, 826 F.2d 1379 (4th Cir. 1987), affg. T.C. Memo.
1986-149, also involving constructive dividends, in which
petitioner appeared on brief for the taxpayer. Petzoldt v.
Commissioner, 92 T.C. at 674; Estate of Reis v. Commissioner, 87
T.C. 1016, 1027 (1986). Further, we believe that petitioner
knows that expenses can be apportioned between the business and
Page: Previous 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 NextLast modified: May 25, 2011