- 21 - 1987 1988 1989 John Kenny Co. Wages $34,876.64 $31,351.34 $31,200.00 Federal tax withheld 4,935.09 4,236.30 4,200.04 State tax withheld 811.42 732.90 803.14 Social Security tax withheld 2,493.68 2,354.49 2,343.12 Douglas Water Co. Wages 6,500.00 6,750.00 6,500.00 Federal tax withheld 542.00 540.00 520.00 State tax withheld 160.68 166.86 160.68 Social Security tax withheld 464.62 506.98 488.06 After withholding for various taxes, Mr. Morris received during 1987, 1988, and 1989, respectively, (1) net wages (a) from John Kenny Company of $26,636.45, $24,027.65, and $23,853.70 and (b) from Douglas Water Co. of $5,332.70, $5,536.16, and $5,331.26 and (2) total net wages from both of those companies of $31,969.15, $29,563.81, and $29,184.96. Petitioner relied on Mr. Morris to prepare the joint returns for the years at issue, had confidence in his ability to prepare those returns properly, and, as far as petitioner knew, Mr. Morris never received any complaints about the returns that he prepared for others. Criminal Charges of Tax Evasion Against Mr. Morris On December 30, 1992, Mr. Morris pleaded guilty to two counts of tax evasion under 26 U.S.C. section 7201 (1994) for not reporting as income in the joint returns for 1987 and 1988Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
Last modified: May 25, 2011