Don C. and Judy Montgomery - Page 13

                                       - 13 -                                         

             the money he received from Trans State into H&B's account                
             at First Interstate.                                                     

             Wholesale Fuels, Inc.                                                    
                  In 1988, petitioner and several other individuals                   
             formed a corporation called Wholesale Fuels, Inc.                        
             (Wholesale Fuels).  Petitioner intended Wholesale Fuels                  
             to operate as a "jobber" for Pet-Don.  Mr. Petty and                     
             Mr. James Jordan each contributed $50,000 as capital to the              
             corporation.  The original shareholders were petitioner,                 
             Mr. Jordan, H.T. Jordan, and Mr. Frank G. McGuire.  There                
             is no evidence in the record that Mr. Petty held any stock               
             in Wholesale Fuels at any time during the years in issue.                
             On May 27, 1988, a bank account was opened in the name of                
             Wholesale Fuels at Founders Bank in Oklahoma City,                       
             Oklahoma.  Both petitioner and Mr. Petty were authorized                 
             to sign checks drawn on this account.                                    
                  On August 4, 1988, petitioner filed with respondent,                
             on behalf of Wholesale Fuels, Form 637, Registration for                 
             Tax-Free Transactions Under Chapters 31, 32, and 38 of the               
             Internal Revenue Code.  Petitioner signed the form as                    
             president of Wholesale Fuels, stating that the company was               
             a wholesale distributor in the business of purchasing and                
             selling heating oil.  The form bears a handwritten notation              
             stating that it was revoked on February 12, 1990.                        




Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011