- 10 - 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.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