Limited Gaming of America, Inc. - Page 5




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                  Taxable Year       Type of Tax         Amount of Tax                                 
                  1994       Corporate income tax        $5,000                                        
                  1995       Corporate income tax         5,000                                        
                  1995       3rd quarter FICA taxes      25,000                                        
                  1995       4th quarter FICA taxes      25,000                                        
                  1995       4th quarter FUTA taxes       1,000                                        
                  1996       1st quarter FICA taxes      12,500                                        
                  Total                               73,500                                           
                  On April 14, 1997, after review of LGA’s tax returns, the                            
            IRS determined that LGA owed neither the FICA nor the FUTA taxes                           
            set forth in the above-mentioned proof of claim and filed a                                
            pleading entitled “Notice of Withdrawal”.                                                  
                  In June 1996, the IRS commenced an audit of petitioner’s                             
            1993-1995 corporate income tax returns.  The audit was completed                           
            on May 6, 1997, and it was determined that LGA owed additional                             
            Federal income taxes for the fiscal years ended 1993 and 1994, as                          
            follows:                                                                                   
                  Year        Type of Liability             Amount of Tax                              
                  1993        Corporate income tax             $1,023.00                               
                  1993        Interest on unpaid income tax       253.65                               
                  1994        Corporate income tax            301,660.00                               
                  1994        Interest on unpaid income tax    49,530.28                               
                  Total                                    352,466.93                                  
                  On May 26, 1997, the IRS prepared an amended proof of claim,                         
            showing total deficiencies in taxes and interest in the total                              
            amount of $352,466.93 for the fiscal years 1993 and 1994.  The                             
            IRS filed a motion for leave to reinstate and amend its                                    
            erroneously withdrawn proof of claim to claim the total tax                                
            liabilities for the years 1993 and 1994 in the amount of                                   






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Last modified: May 25, 2011