J. David Golub - Page 11




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          this denial, but the Court of Appeals dismissed his appeal for               
          failure to pay docket fees.                                                  
          Petitioner’s Income From the Kidder Peabody Account                          
               During 1991, petitioner’s account earned $698.85 in interest            
          income, $15,882.21 in dividends, and an additional $458.41 in                
          proceeds from miscellaneous sales of securities.  At the time of             
          the liquidation, in December of 1991, the balance in petitioner’s            
          account reflected a minus $141,400.64.  Kidder Peabody liquidated            
          petitioner’s account in November and December of 1991.  The                  
          subsequent liquidation produced proceeds of $387,686.49.  Kidder             
          Peabody used some of the cash from the proceeds to pay off                   
          petitioner’s negative account liability.  It sent the remaining              
          funds, in five checks totaling $246,976.40, to petitioner.2                  
               On his Federal income tax return for 1991, petitioner failed            
          to report the dividend income from his account with Kidder                   
          Peabody.  On Schedule B of the return, where interest income from            
          Kidder Peabody should have been reported, petitioner wrote in the            
          word “LITIGATION”.  On Schedule D of his return, in the space for            
          reporting long-term capital gains, petitioner wrote “NONE”.  On              


               2 This figure includes the net amount of interest income                
          ($192.91) plus dividends received during December 1991 ($674.37)             
          less accrued interest expense for that month ($176.73).  The bulk            
          of these payments came in the form of a check for $246,332.77,               
          which petitioner deposited into his bank account on Dec. 6, 1991.            
          A check for the December dividends in the amount of $565 was                 
          issued to petitioner in January 1992.                                        




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