American Lithofold Corp. v. Commissioner
United States Tax Court
Petitioner's income tax returns claimed various expenses as deductions for 1950 and 1951 which were spurious and fictitious and unrelated to its business operations, dominated and controlled by its president and members of his family who benefited from the funds diverted for their personal use.
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Petitioner's income tax returns claimed various expenses as deductions for 1950 and 1951 which were spurious and fictitious and unrelated to its business operations, dominated and controlled by its president and members of his family who benefited from the funds diverted for their personal use. Held, petitioner not barred by collateral estoppel from denying its fraud because of conviction of its president for filing and causing to be filed a false and fraudulent corporate return for 1951. C.B.C. Super Markets, Inc., 54 T.C. 882 (1970), followed. Held, further: The tax returns in question were…
1Opinion of the Court
Hoyt, Judge:
Respondent determined deficiencies in petitioner’s income tax for the years 1950 and 1951 in the respective amounts of $78,187.09 and $181,244.66 and determined additions to tax under section 293 (b) of the 1939 Internal Revenue Code1 for the years 1950 and 1951 in the respective amounts of $39,093.55 and $201,314.74. In an amendment to his answer the respondent claimed an increased deficiency in income tax and an increased addition to tax for 1950 in the respective total amounts of $85,259.66 and $42,629.83. The increased deficiency for 1950 resulted from a change in position by…
2Cases cited22 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Spies v. United StatesSupreme Court of the United States · 1943
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Challenge Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- William J. Drieborg and Laura D. Drieborg v. Commissioner of Internal Revenue, William J. Drieborg v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1955
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3Cited by30 opinions
- Stone v. CommissionerUnited States Tax Court · 1971
- King's Court Mobile Home Park, Inc. v. CommissionerUnited States Tax Court · 1992
- Alexander Shokai, Inc. Edward Alexander Estelle Alexander v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1994
- B. B. Rider Corp. v. CommissionerUnited States Tax Court · 1982
- Whyte v. CommissionerUnited States Tax Court · 1986
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