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(3) Whether John committed fraud in not reporting income
from scrap metal sales for the years in issue. We hold that he
did.1
(4) Whether Simco committed fraud or, in the alternative,
was negligent in not reporting income from scrap metal sales for
the years in issue. We hold that Simco is not liable for either.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. We
incorporate by this reference the stipulation of facts,
supplemental stipulation of facts, and attached exhibits. At the
time of filing the petitions, Simco’s offices were located in
Detroit, Michigan, and John resided in Bloomfield Hills,
Michigan.
Overview
Simco was a corporation engaged in the reconditioning and
resale of automobile water pumps. Simco’s taxable year was a
fiscal year ending June 30. John and his brother Neal MacLean
1 John raised as an affirmative defense in his amended
petition, and petitioners argue on brief, that assessment is
barred by the statute of limitations on assessment and collection
in sec. 6501. Because we find that John committed fraud, the
period of limitations remains open, and respondent may assess at
any time. See sec. 6501(c)(1).
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