Gary Gealer - Page 5

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          sign an extension of the limitations period.                                
               On November 4, 1998, on the basis of the IRS's understanding           
          that there would be no meeting before November 17, 1998, the                
          audit file was forwarded to the review section because the period           
          of limitations was running.  The notice of deficiency for                   
          petitioner's 1995 tax year was issued on February 2, 1999.                  
               Respondent determined a deficiency of $36,565 in                       
          petitioner's 1995 Federal income tax and a section 6662(a)                  
          penalty of $7,313.  The adjustments contained in the notice of              
          deficiency resulted primarily from respondent's determination               
          that $104,582 of expenses paid by The Fourth Dreamer were                   
          personal and benefited petitioner and thereby constituted                   
          constructive dividend income to him.  The notice stated that                
          petitioner did not provide any information to substantiate                  
          whether the expenses deducted on the corporate return were                  
          personal or business related and that no books or records for the           
          corporation were provided.  Adjustments were made to petitioner's           
          personal exemption and itemized and standard deductions.                    
               On April 16, 1999, the District Court ordered petitioner to            
          provide the information requested in the second summons.                    
          Petitioner finally began to do so on or about April 29, 1999.               
               Petitioner claimed in his petition to this Court that the              
          business deductions claimed by The Fourth Dreamer were legitimate           
          business deductions.  He further claimed that he was denied an              

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