Clapp v. Commissioner of Internal Revenue

875 F.2d 1396 63 A.F.T.R.2d 89 -1451, 89-1 USTC P 9357 George C. CLAPP, Jr., Margaret Clapp; Life Health Services; Double D. Donuts Company; Gowing Enterprises, George Clapp, Trustee; John F. Dement; Margaret A. Dement; Jim Standley; Sharon F. Standley; Sucaba Enterprises, Inc. Trust, Jim & Sharon Standley, Trustee; Aeri Trust Organization, Jim & Sharon Standley, Trustee; John F. Dement; Margaret A. Dement; New Life Health Center, Eugene A. Burns and Linda H. Burns; Sheldon C. Deal; Reva C. Deal; Sucaba Enterprises Trust, a Business Trust Organization; Mogollon Trust Organization, a Business Trust Organization; Mule Creek Trust Organization, a Business Trust Organization; Jim Standley, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. No. 88-7083. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 6, 1989. Decided May 24, 1989. William A. Cohan, La Jolla, Cal., for petitioners-appellants. Stuart E. Horwich, Dept. of Justice, Washington, D.C., for respondent-appellee. Appeal from the United States Tax Court. Before Alfred T. GOODWIN, Chief Judge, ALARCON and NELSON, Circuit Judges. GOODWIN, Chief Judge: 1 The issues in…