John J. Maloney and Mary Frances Maloney - Page 3

                                                - 3 -                                                   

            county issued Mr. Maloney two Forms 1099 stating that in 1984 it                            
            paid him $445,516.48 and $6,942.35 and a "corrected" Form 1099                              
            stating it paid him $432,000.13.  Mr. Butler prepared Mr.                                   
            Maloney's general ledgers and 1984 tax return.  On their return,                            
            petitioners elected accrual as the method of accounting and                                 
            reported $409,625 of gross receipts.                                                        
                  In 1985, the county paid Mr. Maloney $370,734.49.  In early                           
            1986, the county issued Mr. Maloney a Form 1099 stating that in                             
            1985 it paid him $298,788.16.  Petitioners, on their 1985 return,                           
            reported $370,836 of Schedule C gross receipts but did not                                  
            identify their method of accounting.                                                        
                  During 1986, the Internal Revenue Service (IRS) interviewed                           
            Mr. Maloney in connection with a Federal grand jury investigation                           
            into the county's prison construction project.  Mr. Maloney                                 
            provided the workpapers that his accountant had prepared and                                
            fully cooperated with the investigation, which continued through                            
            1987.                                                                                       
                  In 1986, the county paid Mr. Maloney $927,992.65.  Mr.                                
            Butler recorded on the 1986 general ledger $880,565.83.  In early                           
            1987, the county issued a Form 1099 stating that it paid Mr.                                
            Maloney $844,497.87 in 1986.  After receiving this form, Mr.                                
            Butler changed the amount of gross receipts reflected on the 1986                           
            general ledger from $880,565.83 to $844,497.87.  Subsequently,                              
            the county issued two corrected Forms 1099, each stating that in                            





Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011