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deficiency as required by section 6212(a).1 A hearing was held
on petitioner's motion in Miami, Florida.
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. At the time the petition
was filed, petitioner resided in Orlando, Florida.
In 1998, respondent examined the U.S. Corporate Income Tax
Return, Form 1120, of Levitz Mobile Home Brokers, Inc. (Levitz)
for the fiscal year ending September 30, 1994. Though the
examination resulted in a "no-change" report to Levitz, a
subchapter C corporation, respondent believed it had uncovered
facts which would result in changes to the income tax liability
of petitioner, who was the sole shareholder of Levitz during
1994.
Respondent found that petitioner had drawn total funds in
the amount of $356,124.922 from Levitz several times during the
1994 fiscal year and that the funds were used to pay petitioner's
personal expenses. Respondent concluded that the withdrawals may
have constituted constructive dividends from Levitz to
petitioner.
1
All section references are to the Internal Revenue Code in
effect for the years in issue.
2
The funds were disbursed in the form of checks made payable
to petitioner.
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