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SUPPLEMENTAL MEMORANDUM OPINION
SWIFT, Judge: This matter is before us on the parties’
dispute as to entry of decisions pursuant to Rule 155.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
In our prior opinion, we held that for 1995 and 1996
petitioner K & M La Botica, Inc. (K & M), and for 1995, 1996, and
1997 petitioner Khaled Ahmed (Ahmed) were liable under section
6663(a) for civil fraud, and we held that for 1998 Ahmed was
liable under section 6651(f) for civil fraud.
At trial, the parties, among other things, stipulated that
for 1997 and 1998 several corporations associated with Ahmed were
to be treated as Ahmed’s nominees and that the nominee
corporations’ income and expenses were to be attributed to Ahmed
individually.2 The parties also stipulated the amounts of income
2 In the parties’ stipulation, the parties also stipulated
that the mere fact that Ahmed had conceded the nominee status of
the various corporations would have no bearing on the issue of
fraud. The stipulation, however, expressly preserved
respondent’s right to argue, and the Court to find, that the
corporations in fact constituted Ahmed’s nominees and that such a
finding could be used to support a finding of fraud. In our
prior opinion, and independently of the parties’ stipulation, we
made specific findings of fact that the corporations were Ahmed’s
nominees, and we went further. We found as follows:
(continued...)
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Last modified: May 25, 2011