Ernest R. Infelise and Ann Infelise - Page 3

                                        - 3 -                                         

               During the years in issue, Mr. Infelise and Mr. Jahoda                 
          continued to operate and expand their gambling activities.  Mr.             
          Infelise's income from these activities totaled $368,000,                   
          $135,000, $110,000, $265,500, and $164,500 in 1983, 1984, 1985,             
          1986, and 1988, respectively.  Mr. Jahoda managed the daily                 
          affairs of the business and reported to Mr. Infelise.  They                 
          employed four men to collect debts and help run the daily                   
          operations.                                                                 
               During the years in issue, Mrs. Infelise knew that the                 
          Internal Revenue Service (IRS) was investigating Mr. Infelise's             
          gambling activities.  In 1983, IRS agents searched petitioners'             
          home and seized cash, a radio scanner, and gambling records.  In            
          December of 1986, IRS agents investigated Mr. Infelise's gambling           
          activities and raided Mr. Jahoda's home.  At a dinner following             
          the raid of Mr. Jahoda's home, Mrs. Infelise was present during a           
          discussion between her husband and Mr. Jahoda relating to the               
          effect the raid would have on the business.  During the years at            
          issue, Mrs. Infelise attended many other business and social                
          functions with Mr. Infelise's associates.                                   
               During the years in issue, petitioners filed joint Federal             
          income tax returns.  The income from Mr. Infelise's gambling                
          activities was not reported on these returns.  In 1992, Mr.                 
          Infelise was convicted for, among other things, the false                   
          preparation and filing of Federal income tax returns relating to            





Page:  Previous  1  2  3  4  5  Next

Last modified: May 25, 2011