Michael W. Rehtorik, et al. - Page 10

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          managed account investor and then transferred through GSC America           
          to GSC:                                                                     

                                          Years in Issue                              
            Purpose                       1984    1985    1987                        
            Hedge transactions            $114,025   $    0 $       0                 
            Payments of principal         58,380   25,334   45,865                    
            and interest on managed                                                   
            account funds                                                             
            Purchase of Krugerrands       0        0   37,725                         
            $100,000 transfer             0        0  100,000                         
                           Total          $172,405   $25,334 $183,590                 

          Tax Returns                                                                 
               The following schedule reflects the date filed, timeliness,            
          gross income reported, and filing status relating to each of                
          petitioner’s Federal income tax returns for 1984 through 1987.              

                                Gross Income                                          
          Return  Date Filed      Filed       Reported             Filing Status      
          1984     8/15/85       timely $147,000   married filing jointly             
          1985     6/13/86      untimely     $174,900married filing jointly             
          1986     2/26/88      untimely$254,573   married filing separately          
          1987      4/7/89      untimely      $83,600married filing separately        

               The above gross income reported on the tax returns for each            
          year consisted primarily of petitioner’s salary income from GSC             
          and Barbara B. Rehtorik’s salary income from her employment as              
          manager of a retail clothing store.                                         
               Petitioners did not include as income on their 1984 and 1985           
          joint Federal income tax returns, and petitioner did not include            
          as income on his 1987 individual Federal income tax return, any             





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