- 2 - and the sole shareholder of Inter-Regional Service Corp. (Corporation), and (2) Harlan Sharpers, Corporation’s director. Respondent objects to petitioners’ motion, arguing primarily that a genuine issue of fact exists as to the applicability of res judicata. Respondent supports her objection with two affidavits, one of which has attached exhibits, and a memorandum of law. Respondent’s affiants are: (1) Jerry Li, Associate Chief of Appeals, Internal Revenue Service, in San Francisco, California, and (2) Debra K. Estrem, respondent’s counsel herein. We agree with respondent that this case is not ripe for summary adjudication due to differences in opinion as to material facts, and we shall deny petitioners’ motion. Background1 Corporation was incorporated in the State of California on October 24, 1983, and Mr. Sturman is its only shareholder. Since its incorporation, Corporation has been engaged in the adult entertainment industry. It owns and services arcade machines that it places in adult book stores. At all relevant times, Mr. Sturman was Corporation’s general manager and chief executive officer. Mr. Sturman was indicted by a Federal grand jury in 1986. In relevant part, the indictment charged that he had 1 The “facts” presented in this Opinion are stated solely for purposes of deciding the motion and are not findings of fact for this case. Fed. R. Civ. P. 52(a); Sundstrand Corp. v. Commissioner, 98 T.C. 518, 520 (1992), affd. 17 F.3d 965 (7th Cir. 1994). When they petitioned the Court, petitioners resided in Hillsborough, California.Page: Previous 1 2 3 4 5 6 7 Next
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