- 11 -
received constructive dividends from FAMC in the amounts of
$67,500, $55,000, and $32,500 for the calendar years 1989, 1990,
and 1991, respectively.
During 1989 and 1990, Leste received bonuses from FAMC in the
amounts of $29,431 and $130,000, respectively. The entire amount
of the 1989 bonus and one-half of the 1990 bonus were incorrectly
reported as self-employment income on Leste's individual income tax
returns for the respective years. Leste concedes that this error
resulted in the overstatement of deductions for contributions to
his pension plan, and that he is liable for excise taxes on the
overstated amounts.
During 1990 and 1991, Moore received bonuses from FAMC in the
amounts of $130,000 and $21,970, respectively. One-half of the
1990 bonus and the entire amount of the 1991 bonus were not
reported on Moore's original income tax returns for the respective
years. After respondent's examination of FAMC's returns had
commenced, Moore filed an amended income tax return for 1990
reporting the additional $65,000 in bonus income for that year.
Moore also has conceded that he is liable for the bonus income he
failed to report on his 1991 return.
On its income tax return for the fiscal year ending October
31, 1991, FAMC claimed $202,525 for cost of goods sold. Respondent
disallowed this amount in full, and FAMC concedes the disallowance.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011