- 2 -2
2. Held, further, the diverted funds were
constructive dividends and taxable to F in the manner
provided by secs. 301(c) and 316(a), I.R.C.
3. Held, further, the diverted funds were properly
includable in J's income. Sec. 61(a), I.R.C.; Commissioner
v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).
4. Held, further, J and F are liable for additions to
tax and penalties under secs. 6653(b) and 6663, I.R.C.
5. Held, further, J is liable for additions to tax
under sec. 6651(a), I.R.C.
Gary D. Borek, for petitioners.
Jerome F. Warner and Raymond M. Boulanger, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
NIMS, Judge: Respondent determined deficiencies, additions
to tax, and penalties for 1988, 1989, and 1990 with respect to
petitioner AJF Transportation Consultants, Inc.'s (AJF) Federal
income taxes as follows:
Additions to Tax Penalty
Year Deficiency Sec. 6653(b) Sec. 6651(a) Sec. 6663
1988 $90,137 $45,751.50 $7,284
1989 66,240 16,560 $36,099.75
1990 46,694 11,674 32,841.75
Respondent also determined deficiencies, an addition to tax,
and penalties for 1988 and 1989 with respect to petitioners
Anthony J. and Carol L. Ferrentino's Federal income taxes, and
for 1990 with respect to petitioner Anthony J. Ferrentino's
Federal income taxes, as follows:
Addition to Tax Penalty
Year Deficiency Sec. 6653(b) Sec. 6663
1988 $53,480 $38,440.50
1989 54,048 $32,292.75
1990 110,581 34,201.50
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