- 3 -3 Goodies, which sold a wide variety of hunting and fishing goods, while Mr. Smith managed National Distributors, which sold ammunition at gun shows. Petitioners also owned three residential rental properties. Petitioners did not maintain any personal bank accounts but did maintain two business accounts: a general checking account into which they deposited business and rental receipts and a payroll checking account. During each year in issue, Guns & Goodies and National Distributors had total gross receipts of approximately $1 million, 60 percent to 70 percent of which were in cash. Petitioners regularly deposited most of their business receipts into their general checking account. Some of petitioners' business receipts, however, were never deposited and were used to pay petitioners' personal living expenses. Petitioners did not maintain records of the cash that they received but did not deposit, and they regularly disposed of cash register tapes and deposit slips. They did not maintain inventory records, except for 1993 ending inventory, or sales receipts. Petitioners retained monthly bank statements and maintained a firearms log which recorded the identity of the purchaser and serial number of every gun purchased. Petitioners failed to pay taxes relating to their employees and, as a result, on December 23, 1993, the Internal Revenue Service (IRS) seized Guns & Goodies. The IRS informedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011