Gold Bar, Incorporated - Page 9




                                         - 9 -                                          
               With regard to whether petitioner intended to evade taxes                
          known to be owing by conduct intended to conceal, mislead, or                 
          otherwise prevent the collection of taxes, we must look at Mr.                
          Golden’s conduct to determine whether it exhibited any of the                 
          “badges of fraud”.                                                            
               Petitioner’s ledgers were set up in such a way that neither              
          income nor expenses were recorded.  The ledger recorded the loads             
          that the drivers had transported and the gross amounts received               
          by petitioner from the contracting companies as consideration for             
          the transportation of those loads.  These gross receipts were                 
          then reduced by expenses that petitioner charged to the driver.               
          The driver would then receive a check for the net proceeds.  The              
          ledgers did not indicate the cost to petitioner of the various                
          expenses that were deducted from the drivers’ checks.  The                    
          ledgers did not indicate the markup on petitioner’s various                   
          expenses.  Yet Mr. Golden testified that he was aware that there              
          was a markup and aware that petitioner was earning a profit on                
          these items.  This profit was not recorded anywhere in                        
          petitioner’s books or records.                                                
               Further, Mr. Golden, on behalf of petitioner, directed Mr.               
          Jackson, petitioner’s tax return preparer, to claim that                      
          petitioner’s expenses were equal to its income, despite the fact              
          that Mr. Golden testified that he had a “fee” that he charged for             
          everything and that he charged the drivers a brokerage                        






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