Forest L. Buckmaster - Page 8

                                                 - 8 -                                                   
            and found that these trusts were fraudulent.  Id. at 1572.  The                              
            Court of Appeals set forth an extensive analysis of these trusts,                            
            all of which were remarkably similar to Ideal Management.                                    
            Suffice it to say that petitioner misread Portillo v.                                        
            Commissioner, supra, if he truly believes that Portillo stands                               
            for the broad proposition that the determination at hand was                                 
            "naked" because respondent did not actually audit Ideal                                      
                  We find that Ideal Management was merely a device conjured                             
            up for petitioner and other taxpayers seeking to avoid Federal                               
            income tax.  Petitioner testified that he was not tax motivated                              
            when he joined Ideal Management, and that he joined Ideal                                    
            Management mainly to protect his assets from creditors.                                      
            Petitioner testified that he transferred to Ideal Management his                             
            entire ownership interest in his assets so that his personal                                 
            creditors would not be able to seize them if he was ever unable                              
            to pay a judgment or other liability.  Petitioner testified that                             
            he worked for Ideal Management in 1992 for $400 a month, when his                            
            services generated earnings of almost $6,000 a month.  Petitioner                            
            testified that he agreed initially to work for Ideal Management                              
            for $300 per month, performing basically the services he                                     
            performed for almost 20 times that amount the year before.                                   
            Petitioner asks the Court to believe his testimony and hold for                              
            him.  We decline to do so.  We find his testimony incredible.                                
            See Ruark v. Commissioner, 449 F.2d 311, 312 (9th Cir. 1971),                                

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011