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violation of 21 U.S.C. sec. 848. Charles was also charged and
found guilty on three counts for filing false tax returns for the
years 1985 and 1986 in violation of section 7206(1).
Charles was subsequently convicted on the final count and
was ordered to forfeit his profits from the illicit activities to
the U.S. Government. The District Court found that Charles and
the other persons involved in the illegal conduct made profits of
$398,430 and $33,240 in 1985 and 1986, respectively, and
sustained a loss of $36,000 in 1987. United States v. McHan, No.
B-CR-90-41 (W.D.N.C. December 10, 1993). Charles was sentenced
to prison, and he is currently still incarcerated.
The deficiencies in question and additions to tax for fraud5
arise from respondent's determination that petitioners had
unreported income due to Charles' sales of illegal drugs,
principally marijuana. In their petition, petitioners pleaded
that they had no illegal income for the years at issue, and that
the notice of deficiency is without merit. Martha filed an
amendment to amended petition, in which she pleaded innocent
spouse relief under section 6013(e).
Discussion
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trials. Florida Peach Corp. v.
Commissioner, 90 T.C. 678, 681 (1988). Summary judgment may be
granted with respect to all or any part of the legal issues in
5 The additions to tax for fraud were asserted against Charles.
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