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ground that the notice of deficiency underlying the petition
constitutes an improper second notice of deficiency under section
6212(c).1
Background2
During the taxable years 1988 through 1991, Lone Star Life
Insurance Co. was a wholly owned subsidiary of Hibiscus Life
Insurance Co. (Hibiscus). Hibiscus timely filed consolidated
Federal income tax returns, Forms 1120L, pursuant to section 1501
for the taxable years 1988, 1989, 1990, and 1991 on September 14,
1989, September 17, 1990, September 16, 1991, and September 14,
1992, respectively.3
During the years in issue, Hibiscus and petitioner shared
common corporate officers as well as the same mailing address.
In particular, Jerry Marshall served as controller for Hibiscus
and vice president and controller for petitioner, while Gary
Powers served as treasurer for Hibiscus and vice president
(finance and treasurer) for petitioner.
Revenue Agent Anita Kate Barrett conducted an examination of
Hibiscus' consolidated tax returns for the taxable years 1988
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code as amended. Rule references are to the
Tax Court Rules of Practice and Procedure.
2 The following is a summary of the relevant facts that do
not appear to be in dispute; they are stated solely for purposes
of deciding the pending motion and are not findings of fact for
these cases.
3 During the years in issue, petitioner was Hibiscus' sole
subsidiary.
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