- 22 -
Wells Fargo bank account.24 On their 1989 Form 1040, U.S.
Individual Income Tax Return, the Bensons claimed a deduction for
a portion of the legal fees paid to Mr. Carroll of $77,973.
(g) Automobile and Truck Deductions
ERG claimed deductions for automobile and truck expenses for
the following years in the amounts stated:
Tax Year Amount of Deduction
1988 $9,645
1989 10,624
1990 23,676
1993 28,308
1994 14,723
ERG bought a Jeep for Eric for $15,000 in 1990 and a Ford Bronco
for Mark for $13,500 in 1993. ERG’s claimed deductions included
the cost of purchasing these two vehicles, as well as DMV fees,
insurance, gasoline, and repairs for four family cars. The
Bensons conceded that the purchase of the automobiles constituted
constructive dividends. See appendix.
The Bensons were authorized signators on a First Interstate
checking account No. 804-2-01477, which was used exclusively to
pay for gasoline purchases through Interlink bank debit card(s)
linked to that account. During the years listed, ERG paid the
following amounts for gasoline:
24The record does not disclose why there is a difference
between the amount of the arbitration award and the amount of the
payment. We assume since the arbitrators’ award included
“interest thereon” that the additional money is accrued interest
from the date of the decision to the date of payment.
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011