Haffner's Service Stations, Inc. - Page 3




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                                  FINDINGS OF FACT3                                   
               Some facts were stipulated.  We incorporate herein by this             
          reference the parties’ stipulation of facts and the exhibits                
          submitted therewith.  We find the stipulated facts accordingly.             
          Petitioner is a C corporation that timely filed Federal income              
          tax returns for the subject years.                                          
          Background                                                                  
               Petitioner retails gasoline and related products                       
          (collectively, gasoline) and home heating oil in Massachusetts              
          and New Hampshire.  Petitioner sells its gasoline and home                  
          heating oil only for cash, and its service stations (stations)              
          only sell gasoline.  Petitioner’s stations all display the name             
          “Haffner’s” and operate under the name Haffner’s Service                    
          Stations, Inc.                                                              


               3 During trial, petitioner elicited testimony from its                 
          accountants (Seymour Rubin (Rubin) and George Goertz (Goertz))              
          and some of its faithful (to the Haffner/Fournier family),                  
          longtime employees (Peggy Willett (Willett), Mary Osgood                    
          (Osgood), Roland Beauchesne (Beauchesne), and E. Haffner Fournier           
          (Haff)).  We find unreliable much of the testimony of Rubin,                
          Willett, Osgood, and Haff.  We find much of their testimony to be           
          vague and uncorroborated.  We also find some of the testimony of            
          Haff to be inconsistent with and/or contrary to the documentary             
          evidence.  Under the circumstances, we are not required to, and             
          we do not, rely on the unreliable testimony of Rubin, Willett,              
          Osgood, and Haff to support petitioner’s positions herein.  See             
          Brookfield Wire Co. v. Commissioner, 667 F.2d 551, 552 (1st Cir.            
          1981), affg. T.C. Memo. 1980-321; Tokarski v. Commissioner, 87              
          T.C. 74, 77 (1986).  See also Kenney v. Commissioner, T.C. Memo.            
          1995-431, where the Court declined to rely upon most of the                 
          testimony of the taxpayer and a long list of relatives and close            
          friends who testified in support of her claim of innocent spouse            
          relief.                                                                     




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