- 8 -
Beginning in 1982, Mr. Burton designed, installed, and maintained
the computer system of petitioner. Part of that system included
a program that tracked customer responses to advertisements and a
program used for the company’s accounting. At all relevant
times, Mr. Burton also worked for a company known as Fiserv,
installing computer systems for banks.
As vice president of petitioner, Denovan developed and
executed sales and marketing strategies and was responsible for
organizing and managing petitioner’s national sales
representatives. He was responsible for hiring employees and was
in charge of the shipping of petitioner’s products from suppliers
to vendors. During the calendar year 1990, petitioner employed a
total of 30 employees. At all relevant times, Denovan was
employed full time by the Port of Seattle Police Department,
where he was responsible for training and scheduling special
teams of police.
Petitioner had gross receipts and retained earnings for its
tax years as follows:
1987 1988 1989 1990
Gross receipts $990,388 $975,254 $1,222,973 $4,675,219
Retained earnings 215,154 231,401 241,839 341,239
On June 29, 1990, bonus checks were issued by petitioner.
Bonuses were paid to Ms. Burton, Mr. Burton, and Denovan in the
amounts of $700,000, $200,000, and $100,000, respectively.
Twenty percent of these amounts was withheld and paid to the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011