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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.
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