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services for Burien Nissan during the years at issue. On the
record before us, we find that petitioners have failed to show
that Ms. Whitehead performed any services for Burien Nissan
during the years at issue.39
Assuming arguendo that petitioners had shown that Ms.
Whitehead performed any services for Burien Nissan during the
years at issue, we find on the record before us that petitioners
have failed to show that Burien Nissan intended to, or did in
39Ms. Whitehead testified at length about her involvement in
planning and carrying out plans for two Burien Nissan employee
functions (alleged employee functions) during each year at issue.
We are not required to, and we shall not, rely on Ms. Whitehead’s
testimony. Moreover, petitioners did not introduce into the
record any credible corroborating evidence that establishes that
such alleged functions took place and that Ms. Whitehead per-
formed any services with respect to such alleged functions. We
infer from petitioners’ failure to proffer any such credible
corroborating evidence that any such evidence does not exist and
that, if any such evidence does exist, it would not have substan-
tiated petitioners’ position with respect to the alleged services
provided to Burien Nissan by Ms. Whitehead during the years at
issue. See Wichita Terminal Elevator Co. v. Commissioner, 6 T.C.
1158, 1164-1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947). In
this connection, we note that in Form 1120 that Burien Nissan
filed for each of the years at issue it did not claim deductions
in amounts large enough to cover the several thousand dollars
that Ms. Whitehead testified it spent each year on the alleged
employee functions. Assuming arguendo that petitioners had
established that Burien Nissan held the alleged employee func-
tions during each year at issue and that Ms. Whitehead performed
some services with respect to the planning and the carrying out
of plans for such functions, on the record before us, we find
that petitioners have failed to show that Burien Nissan intended
to, or did in fact, compensate Ms. Whitehead for such services.
In this connection, Ms. Whitehead could have performed some
services for Burien Nissan relating to certain alleged employee
functions gratuitously upon the request of her husband, who was
its president and sole stockholder during the years at issue.
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