- 31 -
contends that those funds were significant enough that, under the
circumstances surrounding petitioner, she should have been put on
notice that an inquiry or investigation into the source of those
funds was warranted. Because petitioner did not make any such
inquiry, respondent argues that she should be held responsible.
Petitioner disagrees.
23(...continued)
in the record that establishes why Accu-Data made those payments
to GMAC during 1987 or that petitioner in any way benefited from
those payments. Petitioner testified that on May 12, 1987, she
purchased a 1987 Sunbird, which was the only car available to her
at that time, by making a downpayment of $6,263.50 and borrowed
the balance of the purchase price for that car. Since petitioner
did not purchase the 1987 Sunbird until May 12, 1987, the monthly
payments that she made to GMAC during the period January through
May 1987 could not have related to that car. It appears that the
probable source of the funds that petitioner used to make the
downpayment on that Sunbird was Accu-Data. However, we have
found that checks totaling at least $11,775 that were drawn on
the Accu-Data account were paid to the order of petitioner, Mr.
Morris, or cash and represented amounts received by or expended
on behalf of petitioner during 1987 and that petitioner included
at least $11,450 of those checks in the deposits analysis that
she prepared for 1987.
With respect to the availability to petitioner during 1988 and
1989 of the funds in certain bank accounts of Meadows, although
petitioner was a signatory on both of those accounts and signed a
check for $100 drawn on the Meadows account at the Champaign
National Bank to pay the premium on a liability insurance policy
for the Illinois land, we have found that during the years at
issue Mr. Morris controlled the affairs of Meadows and that
petitioner was not involved in its day-to-day operations. We
believe petitioner's testimony that, to her knowledge, she did
not sign any other checks drawn on the Meadows bank accounts. In
this regard, although petitioner and Mr. Morris opened a savings
account at American Savings during 1989 by depositing $20,000
from the joint checking and/or savings accounts and $15,000 from
the Meadows account at the National Bank of Monticello, peti-
tioner testified that the money deposited into that account was
used by Meadows for the gravel pit and that she did not receive
any of that money.
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