Michael T. Caracci and Cindy W. Caracci, et al. - Page 3




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          revocations of exempt status under section 501(c)(3).2                      
          Respondent determined the following income tax deficiencies and             
          accuracy-related penalties:                                                 
               Accuracy-related penalty                                               
                Petitioner                     Deficiency          sec. 6662(a)       
          Michael T. and Cindy W. Caracci$2,192,643          $438,528.60               
          Vincent E. and Denise A. Caracci      1,272,216           254,443.20        
          Christina C. and David C.                                                   
          McQuillen                     1,272,307           254,461.40                
          Respondent determined the following excise tax deficiencies:                
                                                  Deficiency                          
          Sec. 4958  Sec. 4958     Sec. 4958                                          
          Petitioner            (a)(1)      (a)(2)         (b)                        
          Sta-Home Health Agency   $1,948,559      -0-      $15,588,474               
          of Carthage, Inc.                                                           
          Sta-Home Health Agency    1,384,944      -0-       11,079,522               
          of Greenwood, Inc.                                                          
          Sta-Home Health Agency     1,302,420      -0-       10,419,362              
          of Jackson, Inc.                                                            
          Joyce P. Caracci           4,635,923    $30,000     37,087,388              
          Michael Caracci          4,635,923     30,000     37,087,388                
          Victor Caracci           4,635,923      -0-       37,087,388                
          Vincent E. Caracci         4,635,923      -0-       37,087,388              
          Christina C. McQuillen    4,635,923     30,000     37,087,388               
          Respondent determined that the three Sta-Home tax-exempt entities           
          failed to qualify for tax-exempt status under section 501(c)(3).3           



               2 Unless otherwise indicated, section references are to the            
          Internal Revenue Code in effect for the year in issue, and Rule             
          references are to the Tax Court Rules of Practice and Procedure.            
               3 The three Sta-Home tax-exempt entities are Sta-Home Home             
          Health Agency, Inc., Sta-Home Home Health Agency, Inc., of                  
          Forest, Mississippi, and Sta-Home Home Health Agency, Inc., of              
          Grenada, Mississippi.  The three entities against which                     
          respondent determined excise tax deficiencies are the Sta-Home              
          for-profit entities.                                                        




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