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proper Federal employment taxes. Consequently, the only issue
presently before the Court is whether petitioner is entitled to
relief from employment tax liability pursuant to section 530.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue. For
convenience, FICA and FUTA taxes are collectively referred to as
employment taxes.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulations of the parties, with accompanying exhibits, are
incorporated herein by this reference. At the time the petition
was filed, petitioner’s principal place of business was in
Chicago, Illinois.
Petitioner was an Illinois medical service corporation,
incorporated in 1990 to provide emergency medical services to
hospitals. Larry Mitchell, M.D. (Dr. Mitchell), was petitioner’s
president and sole shareholder. Petitioner was involuntarily
dissolved by the Illinois Secretary of State as of November 1,
2001.
On April 15, 1996, Neena Mitchell, the multiple-handicapped
daughter of Dr. Mitchell, died after a chronic illness.
During and after 1990, petitioner entered into contracts
entitled “Emergency Department Services Agreements” (EDS
Agreements) with several Chicago area hospitals to furnish
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