- 12 -
taxable income any of the “retention amounts” withheld by
Farmers.
Mr. Farnsworth’s testimony regarding the retention amounts
was vague and inconsistent with the provisions of the DMAA and
the addenda. Mr. Farnsworth claims to have a basis in the DMAA
of $86,000. He testified that Farmers withheld retention amounts
for 6 years. Yet the documentary evidence shows originally
required retentions of $935, which were thereafter reduced to
$605 per month. Retentions of $935 per month for 6 years would
total only $67,320, substantially less than the $86,000 basis
petitioners claimed. The reduced retention of $605 per month
beginning in March 1968 for the remainder of the 6-year period
would have resulted in total retentions of only $49,170.4 Mr.
Farnsworth was unable to explain the discrepancies between his
recollection of the facts, the basis he claimed, and the terms of
the addenda. Mr. Farnsworth admitted that he had no
documentation to show the amount that Farmers actually retained.
The only evidence offered to support Mr. Farnsworth’s claim that
he has basis in the DMAA was his self-serving testimony,
testimony that was based on his recollection of events 25 to 30
years before the trial.
4Payments of $935 per month for 17 months from November 1966
to March 1968, plus the remaining 55 months of payments at $605
per month, for a total of 72 months of payments (6 years).
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011