- 4 - incorporated herein by this reference. Petitioners resided in Freeport, Minnesota, when they petitioned the Court. Petitioners are brothers. During the years in issue they were dairy farmers who sold milk to Modern Craftsmen Milk Association (MCMA), or to MCMA's successors, through Imperial Investments, Inc. (Imperial). Petitioners participated with Joan Noske, C.P.A., among others, in a scheme to understate their Federal income tax liabilities through purported transfers of farming assets and operations to Imperial. Ms. Noske prepared petitioners' individual income tax returns and Imperial's corporate returns. For 1984 and 1985, Loren Scherping reported on each of his tax returns that he realized $11,000 a year of sole proprietorship income. This was income he derived from farming. For 1986, he reported sole proprietorship income of $11,600, which was farming income. For 1984 and 1985, LaVern Scherping reported on each of his tax returns that he realized $8,000 a year of sole proprietorship income. This was income he derived from farming. For 1986, he reported sole proprietorship income of $8,600, which was farming income. Respondent determined and reflected in a separate notice of deficiency for each petitioner that petitioners were required toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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