Ella Freidus - Page 19

                                        - 19 -                                         

          petitioner was fully aware of her obligation to file tax returns.            
          Petitioner failed to maintain adequate records of her income-                
          producing activities.  The parties have stipulated that                      
          petitioner, an experienced and sophisticated businessperson who              
          maintained books and records for her art business and had                    
          regularly filed tax returns in the past, failed to provide Eisner            
          & Lubin with complete and accurate records for the taxable years             
          1987 and 1988, despite repeated insistence that she do so.                   
               In addition, petitioner rather cavalierly failed to timely              
          pay her accountants, Eisner & Lubin, for their return preparation            
          services for the 1987 and 1988 taxable years, an ongoing problem;            
          petitioner's failure to pay effectively prevented preparation of             
          petitioner's tax returns for these years.  Petitioner had                    
          adequate funds in her Pierpont Account and in the accounts of her            
          nominee corporations to pay Eisner & Lubin.  Petitioner knew that            
          Eisner & Lubin would cease tax return preparation until                      
          petitioner satisfied fees in arrears and paid a $10,000 retainer             
          as Eisner & Lubin's October 21, 1987, letter indicated.  Burns,              
          on behalf of petitioner, finally paid Eisner & Lubin in 1989.                
          The fact that petitioner had sufficient funds to pay Eisner &                
          Lubin and knew that Eisner & Lubin would cease work until paid,              
          further suggests a willful failure to file her 1987 and 1988                 

Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011