- 15 -
Table 3
Withholding Taxes
Payor Wages Fed'l Inc. F.I.C.A.
Dawn Joy $182,000 $62,715.94 $1,975.05
Lucky Fashions 70,200 28,446.12 1,975.05
Lyon Fashion 52,400 16,975.76 1,975.05
AMS Industries 35,600 14,670.00 1,975.05
340,200 122,807.82 7,900.20
Of the F.I.C.A. taxes withheld, $5,925.15 is excess, and is
treated as an income tax payment on the 1981 tax return.
The 1981 tax return includes a claim for refund of
$128,733--$122,808 withholding and $5,925 F.I.C.A. taxes
withheld.
On or about September 24, 1982, the U.S. Treasury issued to
Sheldon and Nancy an $81,054.77 tax refund check on account of
1981.4 Of this amount, $6,694.38 was interest and $74,360.39 was
tax. Petitioners reported $6,798 interest from the U.S. Treasury
on their 1982 tax return. The remaining $54,372.61 of the
$128,733 claimed refund was transferred to Nancy's and Sheldon's
1980 tax liability account, as further described, infra, in
connection with table 6. Sheldon deposited the $81,054.77 check
into his individual checking account at Chemical Bank. See infra
table 7. Within 2� weeks, Sheldon had written checks against
this bank account aggregating more than the entire deposited tax
4 The check is dated Sept. 24, 1982, a Friday, but
respondent's transcript of account for 1981 shows that the
transaction is posted as of Sept. 27, 1982, a Monday.
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