OWENSBY & KRITIKOS, INC. v. C.I.R.

No. 86-4073.

819 F.2d 1315 (1987)

OWENSBY & KRITIKOS, INC., Petro-Marine Engineering, Inc. & Subsidiaries, John W. Owensby & Dolores G. Owensby, Theodore A. Kritikos & Be Jo Kritikos, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

United States Court of Appeals, Fifth Circuit.

June 26, 1987.


Attorney(s) appearing for the Case

Michael E. Guarisco, Guarisco, Weiler & Cordes, New Orleans, La., for petitioners.

David M. Moore, Atty., Marlene Gross, Acting Director, Roger M. Olsen, Acting Asst. Atty. Gen., Glenn L. Archer, Jr., Asst. Atty. Gen., Michael L. Paup, Chief, Appellate Sec., Robert A. Bernstein, Atty., Tax Div., U.S. Dept. of Justice, Fred T. Goldberg, Jr., Chief Counsel, I.R.S., Washington, D.C., for respondent.

Before CLARK, Chief Judge, WISDOM, and HIGGINBOTHAM, Circuit Judges.


WISDOM, Circuit Judge:

This appeal presents a single question: whether the Tax Court committed clear error in ruling that amounts paid as compensation in 1978 and 1979 by the corporate appellants to the individual appellants were in part unreasonable. The Tax Court held that a portion of the amount paid was in reality a dividend rather than compensation for services rendered. We conclude that the Tax Court's finding of fact...

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