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that $271,836 of this amount is attributable to payments Harold F.
Swiatek (petitioner) received from Jose Garcia and/or from two of
Mr. Garcia's businesses. Petitioners maintain that these payments
were loans. Thus, the issue for decision concerns the
characterization (loan or income) of the $271,836 petitioner
received from Mr. Garcia and/or his businesses in 1991.1
All section references are to the Internal Revenue Code as in
effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure. All dollar amounts are
rounded.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference.
Petitioners resided in Miami, Florida, at the time they filed
their petition.
Retail Automation Inc. Credit Corp.
Retail Automation Inc. Credit Corp. (RAI), located in
Hackensack, New Jersey, was a finance company which purchased
installment sales contracts from retailers. In 1989, petitioner
1 Petitioners failed to address $23,479 of the total
amount of unreported income determined by respondent. We treat
this failure as a concession by petitioners that they did in fact
receive $23,479 of unreported income during 1991.
Respondent concedes the sec. 6662 accuracy-related penalty.
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