DF Systems, Inc. v. Commissioner

PER CURIAM: *

Petitioner DF Systems appeals the decision of the United States Tax Court that it had a deficiency in federal income tax for the taxable year 2006. We AFFIRM.

DF Systems is an electrical contracting company owned and operated by Larry Dorman and his wife, Gladys Dorman. In 2000, DF Systems received a letter from one of its customers, requesting work to be performed by minority contractors. Lorie Dorman Schroder, the Dorman’s daughter, formed E.L. Construction, Inc., in order to meet this request. DF Systems then convened a special board meeting and voted “to advance money to E.L.…