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for performing audits and other work. Mr. Drummond deposited
those checks into his personal bank and investment accounts or
used some of those checks to purchase cashier's checks. Ms.
Drummond directed employees of ABC not to issue a Form 1099 to
Mr. Drummond for either 1983 or 1984. However, Mr. Drummond knew
that the amounts which he received during the years at issue were
classified as "special payroll" on ABC's books.
Mr. Drummond received gross receipts from his accounting
business for 1983 and 1984 in the amounts of $127,567 and
$119,874, respectively. Of those total amounts, Mr. Drummond was
aware that he received $99,547 and $119,874 from ABC during 1983
and 1984, respectively.
During 1983, Mr. Drummond did not incur or pay any sales
costs in his accounting business. Nor did he incur or pay during
that year any interest expenses in that business. During 1984,
Mr. Drummond did not incur any legal expenses in his accounting
business.
During their marriage, Mr. Drummond and Betty Drummond did
not enter into a separate property agreement. Consequently, the
income that Mr. Drummond received during 1983 from his accounting
business was community property, one-half of which is includible
in Mr. Drummond's income for 1983.
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