Harold Wapnick - Page 5




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          the 13 bank accounts totaling $46,751 in 1985, $86,341 in 1986,             
          and $90,694 in 1987.  Petitioner did not report the interest that           
          Republic Bank paid to the 13 corporations on his tax returns for            
          1985 and 1986.                                                              
          C.   Check Cashing Activity                                                 
               Petitioner received the following amounts of income for                
          cashing checks for customers:                                               
          Customer                    1985           1986           1987              
          S&Z Fashions Corp.       $55,963.83     $25,454.17     $9,789.00            
          LVA Corp.                                              25,132.43            
          McHugh DiVincent                                                            
          Alessi, Inc.        4,270.00            13,763.48      11,919.45            
          E. Chirico, Inc.                                       25,786.45            
          Call Enterprises, Inc.                                   6,391.65           
          Totals               $60,233.83         $39,217.65     $79,018.98           
               Petitioner did not report the amounts that he received from            
          check cashing on his tax returns.                                           
          D.   Treasury Notes                                                         
               Petitioner bought a $400,000 U.S. Treasury note in the name            
          of Poodle Trans. Corp. and a $600,000 U.S. Treasury note in the             
          name of Big John Cab Corp. on April 3, 1985.  He sold them on               
          January 14, 1986, for a gain of $22,826.  The U.S. Government               
          paid total interest on those notes of $66,222 in 1985 and $20,193           
          in 1986 to Poodle Trans. Corp. and Big John Cab Corp.  Petitioner           
          did not report these amounts on his 1985 and 1986 tax returns.              










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