- 6 -
codified at 31 U.S.C. sec. 5313(a) (1988), and its supporting
regulation2 requiring that financial institutions report currency
transactions in excess of $10,000. Petitioner explained that
many of the cashier's checks were slightly under the $10,000
threshold simply because the institution from which the cashier's
checks were purchased assessed a $5 fee for the purchase of
cashier's checks in amounts equal to or greater than $10,000.
As part of their partnership agreement, petitioner and
Carlton had orally agreed that their compensation with regard to
the services provided to Fruitland was to be equal.
Nevertheless, neither petitioner nor Carlton had devised a method
for ensuring that this agreement would be carried out with any
degree of precision. Their agreement was simply based on trust.
Carlton received a salary, payable biweekly, in exchange for the
services he provided to Fruitland. Petitioner, on the other
hand, did not receive a salary. Instead, in exchange for the
services he provided to Fruitland, petitioner was authorized to
draw checks against the partnership's checking account for
personal purposes. During the years at issue, petitioner wrote
checks against the partnership's account in order to pay personal
living expenses in the following amounts:
Year Amount
1987 $30,691
1988 44,969
231 C.F.R. sec. 103.22(a) (1994).
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