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designed to conceal ownership. One such corporation was Flo-Mar,
Inc. (Flo-Mar).
In November 1982, Flo-Mar, through its agent Kadyszewski,
purchased a 1983 Offshore Open Fisherman boat for $25,000.
Petitioner, who was a notary public, notarized the transfer
of the boat titles among the various corporations.
In November 1984, Flo-Mar, through its agent Emmens,
purchased a 1979 Cessna airplane for $60,000, $30,000 of which
was paid in cash.
Emmens was the president of Aladen Air Service, Inc.
(Aladen), and petitioner was the secretary/treasurer. In
addition to being a corporate officer of Aladen, petitioner was
an authorized signatory on the corporation's bank account. In
April 1984, Aladen purchased a 1974 Cessna airplane for $114,500.
Petitioner was aware of this purchase.
On occasion, petitioner and Emmens used these boats and
planes for social purposes.
Discussion
We begin by noting that, as a general rule, the
Commissioner's determinations are presumed correct, and the
taxpayer bears the burden of proving otherwise. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). The Commissioner,
however, bears the burden of proof as to the addition to tax for
fraud. Sec. 7454(a); Rule 142(b).
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