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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 . 102
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Last modified: May 25, 2011