- 5 -
listing the names of prisoners incarcerated in the jail and the
number of meals served to each prisoner. Once the statements
were certified as correct by the county auditor, the governing
Board of Commissioners authorized payment to be made to
petitioner. Because he was not required to do so, petitioner did
not provide the county auditor with substantiation or
verification of the actual costs incurred in feeding county
prisoners. Pursuant to the Indiana statutory scheme in effect
during the year in issue, petitioner was entitled to retain the
difference between the meal allowances he received from the
county for feeding the county prisoners and the costs he incurred
to do so.
In 1991, as county sheriff, petitioner received a $30,566
salary that was appropriately reported as wages on petitioners'
1991 Federal income tax return.3 In addition to his salary,
petitioner also received $109,952 as meal allowances from Howard
County for providing meals to the prisoners incarcerated in the
county jail.
Petitioner reported the $109,952 as gross receipts on a
Schedule C included with petitioners' 1991 Federal income tax
return. The Schedule C reflected that petitioner incurred cost
of goods sold in the amount of $68,540. It appears from the
Schedule C that the entire amount of the cost of goods sold was
composed of purchases made during the year, a conclusion that is
There is no dispute that the salary paid to petitioner as
county sheriff was paid to him as an employee of Howard County.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011