Carroll R. Furnish - Page 5




                                        - 5 -                                         
          Expenses                    1993          1994         1995                 
          Car and truck            $2,774         $1,776    $2,776                    
          Forms 10994              178,340      148,900     105,910                   
          Depreciation             3,637          -0-       3,109                     
          Insurance                4,125          4,125     4,775                     
          Legal                    670            510        820                      
          Office expenses          472            378      4,258                      
          Repairs                  668            569      2,569                      
          Supplies                 12,944         23,918    21,458                    
          Taxes and licenses       512            312        518                      
          Utilities                1,198          998      2,797                      
               In 1996, the IRS examined Mr. Furnish’s tax returns.                   
          Sometime before the audit, Mr. Buckner became seriously ill and             
          was hospitalized.  The doctors told Mr. Buckner’s wife that Mr.             
          Buckner was dying and that he would not last another week.  At              
          this time, without Mr. Furnish’s knowledge or consent, Mr.                  
          Buckner’s wife threw out all of Mr. Buckner’s client records,               
          including Mr. Furnish’s records.  During the time the examination           
          was being conducted, Mr. Buckner died.                                      
               After he learned that his records had been destroyed, Mr.              
          Furnish went to suppliers to try to obtain records of what he               
          paid them.  With few exceptions, no records existed other than              
          the ones that he had given to Mr. Buckner (which were destroyed).           
               Mr. Furnish sold his car and hired an attorney to represent            
          him during the IRS examination.  After a short period of time,              



               4  These figures represented amounts Mr. Furnish paid to               
          carpenters and laborers he hired to help him with his                       
          construction work.                                                          






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Last modified: May 25, 2011