Northwestern Indiana Telephone Company - Page 85

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            essentially have attributed the $88,484 only to those specific                             
            matters the parties agree upon.                                                            
                  With respect to the $1,166.59 NITCO expended to Andrew &                             
            Kurth for Dial One Mobile, petitioners have conceded that the                              
            payment was constructive dividend income to Mr. Mussman in 1989,                           
            and we so hold.  NITCO also expended $32,363.64 to B&H for Dial                            
            One Mobile work.  Dial One Mobile was a company Rhys owned, which                          
            was conducting activities with respect to cellular telephone                               
            systems in Asheville, North Carolina, and Enid, Oklahoma.  NITCO                           
            had no interest in Dial One Mobile.  Petitioners have failed to                            
            show that the payment was of direct and substantial benefit to                             
            NITCO.  We hold that the $32,363.64 in payments made to B&H was                            
            constructive dividend income to Mr. Mussman for 1989.                                      
                  With respect to the $3,327.50 NITCO expended to EMCI for                             
            cellular telephone publications, it is not clear whether the                               
            cellular telephone publications were purchased and used to                                 
            benefit NITCO, as opposed to individual members of the Mussman                             
            family.  Petitioners have failed to establish that the                                     
            expenditure furthered NITCO's interest and was of direct and                               
            substantial benefit to NITCO.  We hold that the $3,327.50 payment                          
            was constructive dividend income to Mr. Mussman in 1989.  Rule                             
            142(a).                                                                                    
                  With respect to the expenditures NITCO made to Handlon &                             
            Handlon for various matters, petitioners concede that a $264                               
            payment was for work performed for Kyle's corporation, FiberComm,                          
            and that such payment was constructive dividend income to Mr.                              



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