Lambert's Nursery and Landscaping, Inc. v. United States

CLARK, Chief Judge:

I

The Internal Revenue Service (“IRS” or “the Service”) appeals a final judgment of the district court in favor of taxpayer Lambert’s Nursery and Landscaping, Inc. in a cause tried before Magistrate Roy S. Payne by consent. We affirm.

II

Cardis Lambert operated a landscaping service through the tax years pertinent to this suit (1981-83). Previous to its incorporation in 1976, Lambert owned and operated the business as a sole proprietor. Since incorporation, the company has been wholly owned by Lambert and his wife. The business was operated during the years in question by…