Robert E. Iles and Monica M. Iles - Page 29

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          sometimes referred to as Watkins.19  During 1982, Maximum                   
          Management wrote 47 checks totaling $6,049.81 to Watkins.20                 
          These 1981 and 1982 payments by Maximum Management to Watkins               
          were for Watkins' services in taking care of petitioners'                   
          children.                                                                   
               All $5,525.92 ($300 to Monica, plus $5,225.92 to Watkins)              
          was 1981 net profit of Maximum Management, and so was 1981 income           
          to petitioners.  All $6,049.81 was 1982 net profit of Maximum               
          Management, and so was 1982 income to petitioners.                          




               18(...continued)                                                       
          amounts as to 8 of these 44 checks from the only source that                
          respondent cites.  Our finding is in accordance with the sum of             
          the amounts in the cited exhibit, which is $125.37 less than the            
          sum of the amounts in respondent's proposed finding of fact.                
               19   The cited source for respondent's proposed finding of             
          fact shows that five other checks, totaling $562.51, were written           
          by Maximum Management to Watkins between Jan. 16, 1981, and Feb.            
          13, 1981.  Respondent has not included these checks in the                  
          proposed finding of fact; we treat this as respondent's                     
          concession that these five payments by Maximum Management to                
          Watkins did not result in income to petitioners.                            
               20   Respondent's proposed findings of fact list three                 
          additional checks to Watkins, totaling $352.97, and ask us to               
          find that those checks also gave rise to income to petitioners.             
          The first of these checks does not appear in the exhibit that               
          respondent cites as the sole source for the proposed finding.               
          The second of these checks does appear in the cited exhibit, but            
          was voided; indeed the next check, which respondent also includes           
          in the proposed finding of fact, shows that it was written to               
          replace the voided check.  The third of these checks, is shown in           
          respondent's proposed finding of fact as being made out to                  
          Watkins in the amount of $119.83; in the cited exhibit it is made           
          out to Central Trust Co. in the amount of $3,874.05.  We conclude           
          that none of these three checks is income to petitioners.                   



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