- 5 - in payment of the corporation’s interest in Kywood. That check was also deposited into the account of the Church of the New Age. On September 25, 1987, Kentucky Wood issued a check payable to Mrs. Dubose in the amount of $61,319.61 as payment for 2,693 shares of her stock in Kentucky Wood. On October 29, 1987, at petitioner’s direction, that check was deposited into a new interest-bearing checking account in the name of Earth Harmony Church. Also on September 25, 1987, a check in the amount of $17,773.80 was issued by Kentucky Wood to Mrs. Dubose in payment of her remaining partnership interest in Kywood. This check was also deposited into the Earth Harmony Church account. On April 22, 1988, petitioners opened a checking account in the name of the Church of the Golden Rule. In 1988 and 1989, petitioners transferred $275,000 from the bank account of the Church of the New Age to the bank account of the Church of the Golden Rule. Petitioners had signature authority on the Church of the Golden Rule account and used the funds in that account to make personal investments and to pay personal expenses. Petitioner’s purpose in depositing funds into bank accounts in the name of the Church of the New Age, the Earth Harmony Church, and the Church of the Golden Rule was to avoid income tax on the sale of petitioners’ interests in Kentucky Wood and in Kywood and to avoid paying tax on income earned on the proceeds of sale. To further that purpose, petitioner madePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011