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April 24, 1995, for Harbour Marine Services' taxable year 1982.
Mr. Drummond's stock in Harbour Marine Services became worthless
during 1984.
Other statements that Mr. Drummond made to respondent's
agents to explain his tax situation for 1984 included his false
claim that he did not work during that year. Mr. Drummond also
told respondent's agent that his 1984 return was not accurate
because he had been in the midst of a messy divorce when it was
filed. In fact, Mr. Drummond's divorce was finalized, and he had
remarried, long before his 1984 return was filed. In addition,
at sometime during respondent's examination of Mr. Drummond's
taxable years 1983 and 1984, Mr. Drummond told respondent's agent
that he did not report income from ABC because he was on the
completed contract method.
Another illustration of misleading statements made by Mr.
Drummond to respondent's agents is his claim relating to D.D. &
Associates. About a year and a half after the investigation by
respondent of Mr. Drummond's taxable years 1983 and 1984 had
begun, Mr. Drummond informed respondent's agent that the income
that he received from ABC was partnership income from his part-
nership known as D.D. & Associates. Prior to making that state-
ment to respondent's agent, Mr. Drummond had taken the position
that D.D. & Associates was the name of his accounting business.
Mr. Drummond also told respondent's agent that no return had been
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