- 3 - FINDINGS OF FACT1 Petitioner resided in Chicago, Illinois, when he petitioned the Court. His business is insurance sales, and he has been in this business since 1969. Petitioner and his wife, Lucia A. Whitmer, filed a 1987 Form 1040, U.S. Individual Income Tax Return, using the status of “Married filing joint return”. Although respondent’s notice of deficiency for the 1987 taxable year was issued to both petitioner and Lucia A. Whitmer, Mrs. Whitmer did not petition the Court with respect thereto, and, accordingly, she is not a party here. Petitioner formed a wholly owned corporation, Whitmer Agency, Inc. (Whitco), on or about September 16, 1974, to issue life and health insurance policies and annuities. Petitioner was Whitco’s president, and, in that capacity, he entered into a “General Agent’s Contract” (Agent’s Contract) with ITT Life Insurance Corp. (ITT) on October 22, 1981. Petitioner personally guaranteed Whitco’s performance under the Agent’s Contract. Petitioner, in his capacity as Whitco’s president, also entered into an “Advance Commission and Loan Agreement for General Agent” (Agreement) with ITT on November 19, 1981. Petitioner personally guaranteed Whitco’s performance under the Agreement. The Agent’s Contract and the Agreement authorized Whitco to solicit and 1 Some of the facts have been stipulated and are found accordingly. The stipulation of facts and the attached exhibits are incorporated herein.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011