- 2 - TABLE OF CONTENTS Page Determinations of Deficiencies and Additions to Tax . . 7 Issues . . . . . . . . . . . . . . . . . . . . . . . . . 8 Findings of Fact . . . . . . . . . . . . . . . . . . . . 10 I. Preliminary Facts . . . . . . . . . . . . . . . . . . . 10 A. Background . . . . . . . . . . . . . . . . . . . . . 10 B. Ownership of Diesel Power . . . . . . . . . . . . . 12 C. Audits for Prior Years . . . . . . . . . . . . . . . 13 D. Preparation of Tax Returns . . . . . . . . . . . . . 14 E. Bank Accounts . . . . . . . . . . . . . . . . . . . 15 F. Sale of Diesel Power Stock . . . . . . . . . . . . . 19 II. Transactions With Manufacturers--Commission Income . . . 22 A. Lockheed . . . . . . . . . . . . . . . . . . . . . . 23 B. Payments by Lockheed . . . . . . . . . . . . . . . . 29 C. Ashland . . . . . . . . . . . . . . . . . . . . . . 34 D. Payments by Ashland . . . . . . . . . . . . . . . . 39 E. General Motors . . . . . . . . . . . . . . . . . . . 43 F. Payments Made by General Motors. . . . . . . . . . . 49 G. SEDCO/IMICO . . . . . . . . . . . . . . . . . . . . 54 H. Payments by SEDCO, IMICO, Stewart & Stevenson . . . 56 I. Ingersoll-Rand . . . . . . . . . . . . . . . . . . . 60 J. Payments by Ingersoll-Rand . . . . . . . . . . . . . 62 K. Morgan . . . . . . . . . . . . . . . . . . . . . . . 64 L. Payments by Morgan . . . . . . . . . . . . . . . . . 65 M. Harnischfeger . . . . . . . . . . . . . . . . . . . 66 N. Payments by Harnischfeger . . . . . . . . . . . . . 68 O. Pioneer . . . . . . . . . . . . . . . . . . . . . . 70 P. Payments by Pioneer . . . . . . . . . . . . . . . . 74 Q. Galion . . . . . . . . . . . . . . . . . . . . . . . 77 R. Payments by Galion . . . . . . . . . . . . . . . . . 81 S. Clark . . . . . . . . . . . . . . . . . . . . . . . 85 T. Payments by Clark . . . . . . . . . . . . . . . . . 90 U. Miscellaneous Commissions/Goodyear . . . . . . . . . 94 V. Payments by Miscellaneous Companies/Goodyear . . . . 95 III. Interest and Dividend Income--First National City Bank, London, England, and Crown Life Insurance Company. . . . 100 IV. Interest Income--WHIP Account at Barclays Bank Bahamas . 102Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011