T.P. and Najieh R. Crigler - Page 13




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               3.   Whether FabuGlass Was Largely an Operating Company in             
                    1990-94                                                           
                    a.   Whether FabuGlass Had Operating Assets, Sales, or            
                         Paid Salaries in 1990-94                                     
               FabuGlass reported on its returns for 1990-94 that it had no           
          operating assets and paid no salaries.  This suggests that                  
          FabuGlass was not an operating company.  FabuGlass reported total           
          sales of $30,312 on its 1990-94 returns.  That amount is                    
          insignificant compared to the $1,555,057 it reported as net                 
          losses from stock transactions for those years.                             
                    b.   Whether FabuGlass’ Tax Returns Establish That It             
                         Was an Investment Company                                    
               FabuGlass reported on its 1990-95 returns and its first                
          amended 1994 return that it was an investment company.                      
          Petitioners contend that we should disregard references to                  
          FabuGlass as an investment company on those returns because                 
          FabuGlass was not authorized by its articles of incorporation to            
          engage in investment activities.                                            
               We disagree.  First, petitioner, as the sole owner of                  
          FabuGlass stock in 1990-95 and preparer of FabuGlass’ original              
          1994 return, cannot now disavow those returns without cogent                
          proof that they are incorrect.  Waring v. Commissioner, 412 F.2d            
          800, 801 (3d Cir. 1969), affg. per curiam T.C. Memo. 1968-126;              
          Lare v. Commissioner, 62 T.C. 739, 750 (1974), affd. without                
          published opinion 521 F.2d 1399 (3d Cir. 1975); Kaltreider v.               
          Commissioner, 28 T.C. 121 (1957), affd. 255 F.2d 833 (3d Cir.               





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