Charles A. McGee - Page 4




                                                - 4 -                                                  
                                         FINDINGS OF FACT5                                             
                  When his petitions were filed, petitioner Charles A. McGee                           
            resided in Alabama.  At all pertinent times petitioner was a                               
            self-employed attorney authorized to practice law in Alabama.                              
            Petitioner received Bachelor of Arts and Juris Doctor degrees                              
            from the University of Alabama in 1972 and 1975, respectively.                             
            Petitioner’s law school work included a course in Federal income                           
            taxation.                                                                                  
                  During 1987, 1988, 1989, and 1990, petitioner was married to                         
            Karen McGee.  From 1981 through 1990, petitioner filed only two                            
            Federal individual income tax returns:  A joint 1980 income tax                            
            return with Karen McGee, filed on March 18, 1983, and a joint                              
            1986 income tax return with Karen McGee, filed on October 15,                              
            1987.                                                                                      
            Petitioner’s Tax Returns                                                                   
                  On November 27, 1990, respondent notified petitioner’s                               
            representative of the initiation of an examination of                                      
            petitioner’s 1981, 1982, 1983, 1984, 1985, 1987, and 1988 tax                              
            years.  The scope of the audit was later broadened to include the                          
            1989 and 1990 tax years.  On February 12, 1991, respondent                                 
            received documents purporting to be petitioner’s Federal income                            
            tax returns for the 1981, 1982, 1983, 1984, 1985, 1987, 1988, and                          



                  5 The stipulation of facts and the attached exhibits are                             
            incorporated by this reference.                                                            




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