- 12 - deductions for the fiscal year ending January 31, 1981 because I was not a shareholder for any portion of that year. 5. The amount of additional income omitted in each of the years for which amended returns are being filed by me is as follows: Amount of Year Unreported Income 1983 $31,399.81 1984 16,392.90 Total: $47,792.71 Pursuant to the cooperation agreement, Mr. Feinsmith filed a second amended 1984 personal income tax return on September 2, 1987. On this return, Mr. Feinsmith reported that, in addition to the income reported on his original and first amended return for 1984, he received from Randy Hall during that year a “Constructive Dividend” of $52,320. Mr. Feinsmith attached an affidavit to this second amended return stating: HARVEY FEINSMITH, being duly sworn, deposes and says: 1. I am the President and a shareholder of Randy Hall, Inc. On or about December 31, 1985, Randy Hall, Inc. filed amended federal income tax returns (Form 1120) for the fiscal years ending January 31, 1981, January 31, 1983, and January 31, 1984. At the same time, I filed amended personal tax returns (Form 1040) for calendar years 1983 and 1984. An affidavit was attached to each of the above-described amended returns to explain the purpose of the amendments and the nature of the adjustments to income. 2. During the period for which amended returns were filed, Randy Hall, Inc. claimed false, non- existent business deductions for purported purchases which were not, in fact, made. At the time of filing the amended returns, the officers of Randy Hall, Inc. believed that the false deductions totalledPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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