1 Unless otherwise indicated, all section references are to
the Internal Revenue Code as amended and in effect for the years
in issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
T.C. Memo. 2006-84
UNITED STATES TAX COURT
CHARLES McHAN AND MARTHA McHAN, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 550-92. Filed April 24, 2006.
Charles McHan, pro se.
R. Walton Davis III, for petitioner Martha McHan.
Eric B. Jorgensen and Gwendolyn C. Walker, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
SWIFT, Judge: Pursuant to section 7443A and Rules 180 and
183,1 this case was assigned to and heard by Special Trial Judge
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Lewis R. Carluzzo. His recommended findings of fact and
conclusions of law were filed and served upon the parties on
July 7, 2005. Subsequently, the petitioners filed objections
thereto, and petitioner Charles McHan moved for a new trial.
Respondent filed no objection to the Special Trial Judge’s
recommended findings of fact and conclusions of law, but
respondent did file a reply to petitioners’ objections.
Hereinafter, references to petitioner in the singular are to
petitioner Charles McHan.
We are mindful that with regard to our review of Special
Trial Judge Carluzzo’s recommended findings of facts new Rule
Due regard shall be given to the circumstance that the
Special Trial Judge had the opportunity to evaluate the
credibility of witnesses, and the findings of fact
recommended by the Special Trial Judge shall be presumed to
We have given appropriate deference to the Special Trial
Judge’s recommended factual findings, and, after consideration of
the evidence and the record in this case, we have made minor
changes to his recommended findings and analysis. We also have
made a number of editorial changes to the Special Trial Judge’s
recommended findings of fact and conclusions of law in an effort
to clarify certain matters.
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After consideration of the record herein, the briefs of th