Mazzocchi Bus Co. v. Commissioner

OPINION OF THE COURT

BECKER, Circuit Judge.

This appeal is from a decision of the United States Tax Court which upheld the Com*925missioner’s determination of federal income tax deficiencies for the years 1974 through 1979 against Mazzocchi Bus Co., Inc. (“MBC”), a closely-held corporation; Nicholas Mazzocchi (“Mazzocchi”), its controlling shareholder; and the estate of Mazzocchi’s late wife Rose Marie Mazzocchi, who had filed joint returns with him.1 The Commissioner’s determination stems from Mazzoc-chi’s diversion of receipts totalling more than $700,000 from MBC for his personal use and benefit…