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Advertising and
promotion --- 4,435
Professional fees --- 3,422
Income (loss) ($73,689) ($134,111)
Barry M. Strauss (Strauss), the managing principal of
Barry M. Strauss Associates, Ltd. (Associates), is a tax attorney
and C.P.A. specializing in advising investment bankers in
accounting, tax, and financial matters. Ballard Marine’s Federal
income tax returns for 1986 and 1987 were prepared by an employee
of Associates.
Petitioner’s Tax Returns
Petitioner made returns of income for 1986 and 1987 on
Forms 1040, U.S. Individual Income Tax Return. On those forms,
petitioner reported losses from Ballard Marine in the amounts of
$73,689 and $134,111, respectively.
Petitioner’s Federal income tax returns for 1986 and 1987
were prepared by an employee of Associates.
Strauss had come to represent petitioner in 1984, when the
firm retained Associates to either prepare or review the tax
returns of managing directors to assure that all tax matters were
properly reported by them. Associates was so retained in order
to avoid having the firm embarrassed either by the Securities and
Exchange Commission or the general media on account of the tax
problems of managing directors.
Not an Activity Engaged In for Profit
Ballard Marine’s activity of holding the yacht for charter
was not an activity engaged in for profit.
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Last modified: May 25, 2011