Alan G. Bone and Kathleen A. Bone - Page 16




                                       - 16 -                                         
          Petitioners must show AJCS’s entitlement to the claimed                     
          deduction.  See Rule 142(a).                                                
               Petitioners allege in their petitions that they are entitled           
          to deduct accrued workmen’s compensation expenses of $269,815.              
          Respondent contends that, under section 461(h), petitioners are             
          not entitled to the disputed workmen’s compensation insurance               
          expense deductions because petitioners failed to substantiate               
          that the expenses were incurred.                                            
               Petitioners, in their posttrial brief, state as follows:               
          AJCS “is also entitled to an additional insurance expense of                
          $269,815 per IRC 162 as this expense was for workers’                       
          compensation insurance premiums, not for tort worker’s                      
          compensation claims that are not allowed until paid per IRC 461.”           
          At trial, petitioners’ counsel posed to John Snider, chief                  
          financial officer of AJCS, a series of generalized questions                
          about workmen’s compensation insurance.  That is the extent of              
          petitioners’ arguments and proof.  Petitioners made no attempt to           
          explain various exhibits they submitted regarding this issue.               
               Petitioners submitted copies of checks written from AJCS to            
          various insurance companies.  These checks totaled approximately            
          $275,000.  Petitioners also offered copies of checks remitted by            
          W&J, Inc., to various insurance companies.  These checks totaled            
          over $800,000.  On this record, we remain unaware of the                    
          relevance of checks remitted by W&J, Inc.  Finally, petitioners             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011