was aware of the financial and legal problems that Mr. Burke had encountered
during the years at issue.
Mr. Burke did not inform his wife that he filed the returns in issue
until at least the summer of 1993, after the couple had met with attorney
Michael N. Balsamo. Moreover, Mr. Burke never discussed the contents of the
returns with Mrs. Burke, nor did he advise her that he had signed her name to
the returns. Mrs. Burke did not learn that a signature, purporting to be her
own, appeared on the returns until June 29, 1994, when she examined the
returns at her attorney's office.
Mrs. Burke filed joint returns with Mr. Burke for years prior to the
years in issue. Mrs. Burke personally signed these returns. Similarly,
petitioners filed joint returns, which Mrs. Burke personally signed, for the
taxable years 1989 through 1991.
B. Income and Losses as Reported on the Returns
The 1985, 1986, and 1987 returns filed by Mr. Burke on March 29, 1991,
reported the following items:
Burke Insurance Agencies
1985 1986 1987
Gross income $203,961 $350,653 $39,900
Embezzlement loss 21,800 215,000 --
Ard Rhei, Inc.
1985 1986 1987
Ordinary loss $23,453 $141,418 $37,348
Regarding these alleged losses, the following disclosure statements are
contained in each of the returns for the years in issue:
As per the direction of John J. Burke, amounts which were
withdrawn from two corporations operated by Mr. Burke and
attributed to him, were embezzled by two employees of these
corporations during the years, 1985, 1986 and 1987. As such,
these amounts have not been included as income on this tax return.
Attached please find all legal papers filed to date relating to
this matter.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011