- 8 -- 8 - gross receipts was determined using the bank deposits method. The notice also disallowed, for lack of substantiation, the $51,865 expense and $31,210 distribution deductions claimed on the Form 1041. As a result of these adjustments, the notice determined that there was a $37,312 deficiency in petitioner’s income tax and that petitioner was liable for a $7,462 accuracy- related penalty under section 6662(a). As previously indicated, see supra p. 4, we have held that most of the income that is the subject of the three “whipsaw” notices, including the notice in the case at hand, is properly taxable to Mr. Johnston, and that all but $25 of the balance was paid for work done by Ms. Ghavami. See Johnston v. Commissioner, T.C. Memo. 2000-315. Facts Relating Primarily to Respondent’s Motion To Dismiss As noted above, the original indenture provided that Four WS TT01 was petitioner’s first trustee. The record contains almost no information about Four WS TT01.8 Mr. Chisum testified that Four WS TT01 is a trust, and that Mr. Chisum was (and is) its managing agent and trustee. However, Mr. Chisum did not offer and the record does not contain any trust indenture, corporate charter, partnership agreement, or 8 In response to the Court’s question at the hearing, Mr. Chisum testified that the “Four WS” in the name Four WS TT01 stood for the question-phrase “What’s Wrong With White?”Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011