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payments she admits receiving from Bankers Mortgage represented
loan repayments that were erroneously reported as nonemployee
compensation.
Petitioner introduced a document (Workpaper) she claims was
used by an accountant for Bankers Mortgage to prepare its 1988
Forms W-2, Wage and Tax Statement, and 1099-MISC, Miscellaneous
Income. The Workpaper reflects that petitioner made loans to
Bankers Mortgage totaling $74,341.20 during 1987 and 1988. It
also reflects that, during 1988, petitioner earned a salary of
$75,000 and commissions totaling $98,570 from Bankers Mortgage.
Petitioner claims that, due to financial difficulties, Bankers
Mortgage did not pay her the commissions she earned during 1988.
Petitioner acknowledged that the Workpaper is ambiguous on
its face and could be interpreted to indicate either amounts
petitioner actually received from Bankers Mortgage or merely
amounts owed to her. She did not, however, attempt to remove
such ambiguity by presenting testimony of the accountant
responsible for preparing the Workpaper.
In addition to being ambiguous, the Workpaper is riddled
with inconsistencies and in many instances tends to refute rather
than support petitioner’s contentions. The Workpaper suggests
that petitioner made loans to Bankers Mortgage totaling
$74,341.20 during 1987 and 1988 but does not indicate that any
loan repayments occurred in 1988, whereas petitioner contends
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Last modified: May 25, 2011