- 4 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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