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petitioner make any entry in its books of account to reflect the
award of $100,000 in compensation prior to the end of the fiscal
year. Petitioner made no specific allocation of the $100,000 in
compensation between Doyce Gentry and each of his two sons until
after the end of the fiscal year.
Petitioner filed an Employer’s Quarterly Federal Tax Return,
Form 941, for the fourth calendar quarter of 1994, showing
$152,625 in compensation as subject to withholding for that
quarter. This amount included the $100,000 in compensation paid
to Doyce Gentry and his sons after the end of petitioner’s fiscal
year. The entire period covered by the Form 941, the fourth
quarter of 1994, occurred after the end of petitioner’s fiscal
year. Petitioner did not file a Form 941 including the $100,000
in compensation for any prior quarter ending or beginning prior
to July 31, 1994. Petitioner’s Federal income tax returns were
due and filed on the following dates:
TYE July 31 Date Return Due Date Return Filed
1992 Oct. 15, 1992 Feb. 9, 1993
1993 Oct. 15, 1993 June 13, 1994
1994 Oct. 17, 1994 Mar. 1, 1995
Petitioner obtained no extensions of time for filing any of
these returns.
ULTIMATE FINDING OF FACT
Doyce Gentry and his sons did not constructively receive
the $100,000 of compensation prior to the end of petitioner’s
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