- 46 -
Condo utilities 1,398 1,580
Other personal expenses 5,239 2,221
Property taxes 1,750 3,296
Annual meeting expense 2,183 1,626
Total 151,448 117,641
A. Diverted Corporate Income
The diverted corporate income is the gross receipts omitted
from the corporate returns for each year determined as follows:
1992 1993
State Bank deposits $1,475,700 $1,554,350
Cash payments 101,305 75,487
Nonincome items (335,616) (391,143)
Total gross receipts 1,241,389 1,238,694
Reported on return 1,126,256 1,153,912
Unreported gross receipts 115,133 84,782
The State Bank deposit amounts were the amounts deposited
into the corporation's State Bank account. There is no evidence
that those amounts were distributed to Mr. Beck or to either of
his children. We hold that those amounts are not constructive
dividends to Mr. Beck.
The cash payments include the following:
Cash payments 1992 1993
Cash expenses--till $3,632 $1,709
Wage--till 18,002 2,382
Gambling losses 15,700 –-
Norwest Bank 2,316 4,026
Loan payments 35,000 44,000
Purchase of ring 10,655 –-
Purchase of car 9,400 –-
Merrill Lynch 6,600 –-
Deposit subsequent year –- 23,370
Total cash payments 101,305 75,487
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