Carl E. Jones and Elaine Y. Jones - Page 8

            $94,000.  Towergate was incorporated in 1981 and elected S                                
            corporation status in 1986.  During its taxable years ended                               
            October 31, 1989 through 1992, petitioner was president and sole                          
            stockholder of Towergate.                                                                 
                  Winterchase Townhomes was a 40-unit townhouse project in                            
            which only 34 units were completed.  Winterchase was incorporated                         
            in 1983, and was liquidated on or about September 30, 1990.                               
            During its taxable years ended September 30, 1989 and 1990,                               
            petitioner was president and sole stockholder of Winterchase.                             
            C.  The Accountants                                                                       
                  Petitioner employed an in-house bookkeeper, Sawat                                   
            Lavantucksin (Lavantucksin) to maintain his personal books and                            
            his corporations' books.  Under the direction of petitioner,                              
            Lavantucksin prepared the records of the cash transactions and                            
            the monthly bank statements and made the journal entries                                  
            recording the amounts the corporations lent to petitioner, the                            
            amounts petitioner repaid to the corporations, petitioner's                               
            alleged assumptions of the corporations' indebtedness, the                                
            transfers of the indebtedness between the corporations, and the                           
            transfers between the corporations and petitioner.  Lavantucksin                          
            did not testify at the trial.                                                             
                  Petitioner employed a certified public accountant, Donald                           
            L. Ricks (Ricks), to prepare his personal and corporate returns.                          
            Ricks, or his employee, William Morrisett (Morrisett), checked                            

Page:  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