Louis A. Filios and Estate of Emma L. Filios, Deceased, Louis A. Filios, Executor - Page 7




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          ensure that the various expenses charged to petitioner by the                
          tracks, such as jockey fees and photograph fees, were correct.               
               Kuta kept copies of (a) invoices from petitioner's trainers             
          and from farms where his horses were stabled, and (b) statements             
          from racetracks at which his horses raced showing the race dates,            
          his horses’ standing in those races, and the total amounts that              
          his horses won.  Kuta did not regularly prepare records showing              
          how much each horse earned.  In a few of the years before the                
          years in issue, Kuta prepared a summary at the end of the year               
          showing the earnings of each horse.                                          
               From 1959 to 1989, Kuta prepared spreadsheets which showed              
          expenses of the horse racing and breeding activity by category.              
          Kuta usually prepared the spreadsheets from the checkbook for the            
          activity at the end of the year.  In some years she listed                   
          disbursements chronologically; in other years she listed them by             
          payee.  The disbursement spreadsheets did not segregate expenses             
          by horse.  Kuta used the spreadsheets to know where money was                
          being spent and to give to the accountant to prepare petitioner's            
          tax returns.                                                                 
               From 1990 to the time of trial, Kuta prepared the                       
          spreadsheets on a personal computer.  Kuta could not use the                 
          computer to generate a report that showed petitioner's expenses              
          for each horse.  The spreadsheets did not include information                
          about receipts.                                                              
               Kuta prepared index cards on most of petitioner's horses                
          from around 1956 through the time of the trial which showed the              


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