-39- the agent that he was receiving only one-half of the interest. The agent obtained copies of checks from the buyer of 508 Marsalis which reflected that petitioner was paid the full amount of interest for 1988 and 1989. In several other respects petitioner's responses to respondent's agent were false and/or misleading and shown to be so by third-party investigation by the agent. Petitioner received and failed to report interest income for 1985, 1986, 1987, 1988, and 1989 in the amounts of $22,822, $33,372, $34,052, $17,321, and $7,712, respectively. Petitioner received and failed to report rental income for 1985, 1986, 1987, 1988, and 1989 in the amounts of $15,693, $19,601, $13,859, $3,046, and $9,703, respectively. Petitioner failed to report income from the sale of real properties for 1985, 1986, 1987, 1988, and 1989 in the amounts of $7,884, $18,792, $4,887, $277,646, and $258,163, respectively. Petitioner was entitled to, although he did not claim, a $179,905 passive loss deduction for 1989 as a result of his $200,000 investment with Welch. Petitioner did not keep complete or accurate records of his business activity during the years in issue. Petitioner kept no books of original entry, checkbook records, or other organized set of books. For purposes of preparing his Federal income tax returns, petitioner would provide his return preparer, who was a certified public accountant, with receipts and various papers inPage: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Next
Last modified: May 25, 2011