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W&Y Payment
We are satisfied that W&Y is a legitimate firm in the
jewelry business. Respondent offered no evidence that the
Renaissance payment to W&Y was not for legitimate corporate
purchases. Nor did respondent offer evidence that the amounts
paid to W&Y or the items purchased from W&Y came under
petitioner's control. Respondent has not proven by clear and
convincing evidence any underpayment of tax resulting from the
W&Y payment.
Payments to Ron Gelfman
Respondent has also failed to prove an underpayment arising
from the payments into the Ron Gelfman checking account at the
Trust Co. There is no evidence, much less clear and convincing
evidence, that these payments were for noncorporate purposes.
Renaissance's corporate records contain receipts from Ron Gelfman
Associates, showing the payments to be for business purchases.
Respondent presented no contrary evidence that these were not
actual Renaissance purchases. Respondent never showed that
Renaissance did not receive value in exchange for the payments.
The facts that the Social Security number on the Gelfman bank
account was not in the Internal Revenue Service computer data
base for the New York metropolitan area and that Ron Gelfman
Associates is not known in the jewelry business may raise
suspicions that someone diverted Renaissance funds for
noncorporate purposes. These facts, however, without more, are
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