KJ's Fund Raisers, Inc. - Page 3

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            majority of its funds to come from the sale of lottery tickets                            
            and does not plan to solicit public donations, but will accept                            
            any donations offered.  There is no evidence in the record that                           
            any such donations were ever offered or received.                                         
                  When petitioner was organized, Hurd and Gould were both                             
            officers and directors.  She was president; he was vice                                   
            president, secretary, and treasurer.  The third member of the                             
            board of directors was Karen Gould, a relative of James Gould.                            
                  In April 1993, petitioner replaced its board of directors.                          
            Of the three new members, two were related to Hurd or Gould.  The                         
            board has been altered since then.  The current board has two                             
            members unrelated to Hurd or Gould; the third is Kristine Hurd's                          
            sister.  In a letter to the IRS, petitioner indicated that it                             
            would further revise its board so that none of the members were                           
            related to the officers of KJ's Place.  However, that change has                          
            never been implemented.                                                                   
                  In 1993, petitioner paid Hurd and Gould compensation of                             
            $6,000 each for bookkeeping, accounting and managerial services.                          
            Petitioner also paid $6,000 in rent to KJ's Place.  The measure                           
            of compensation was determined by Hurd and Gould.  On July 1,                             
            1994, changes in Vermont's gambling laws took effect.  In                                 
            accordance with these changes, petitioner stopped paying rent to                          
            KJ's Place and stopped paying wages to Hurd and Gould.                                    
            Currently, there are no business dealings between petitioner's                            

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Last modified: May 25, 2011