-13- respectively.7 By memorandum dated September 13, 1982, SSI’s controller, Tom Basti, hereinafter sometimes referred to as Basti, listed petitioners’ income from SSI for 1981 and for the first 6 months of 1982 as $206,336.60 and $437,592.15, respectively. SSI’s principal bank account was in Central Trust Co.; it was used primarily as a depository for Chartered Representative Fees and SSI client funds. SSI also had accounts in other banks. In 1981, 37 checks and 1 wire transfer, totaling $129,285.67, were drawn on SSI’s Southern Ohio Bank account to petitioners or to third parties on petitioners’ behalf; the entire amount was 1981 income to petitioners.8 7 Monica’s memorandum states that the report was prepared on a cash basis. This one-page memorandum was introduced through Monica on direct examination by respondent. Later the same day, on cross-examination by Robert, Monica testified that SSI used an accrual method of accounting; we have so found. The parties have stipulated, and we have found, infra, that SSI prepared and maintained substantially all of its books and records contemporaneously. We have not found in the record an explanation of why Monica would have produced a cash basis report while contemporaneously maintaining, or overseeing the maintenance of, accrual basis records. 8 The parties’ stipulation lists 40 checks and 1 wire transfer. Respondent’s proposed finding omits three of the checks. We treat this as respondent’s implicit concession of the $8,797.39 total of these three checks. Respondent’s proposed finding lists each of the remaining 37 checks and 1 wire transfer, but incorrectly shows the total amount as $120,285.67. The parties stipulated to the amount of each check and wire transfer. The $9,000 error in the total probably stems from a transposition of two digits during the (continued...)Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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