- 10 - conducting Maple Row’s operations. Mrs. Burrus, who was responsible for writing checks and preparing the ledger, would generally obtain information necessary for this purpose from Dr. Burrus and Mr. Gruen. The ledger recorded the expenditures of the Maple Row operations, as well as its income, such as from sales of cattle,5 from the rental of the houses on the Maple Row properties, and from tobacco allotments. The ledgers also recorded as “income” certain cash transfers from other bank accounts controlled by petitioners, including accounts used for Dr. Burrus’s medical practice and a shopping center owned by petitioners. At the end of each year, Mrs. Burrus gave the ledger and checks to petitioners’ accountant. Petitioners’ accountant prepared petitioners’ returns for each of the years in issue. The accountant would check the ledger against the checks, and make inquiries of Mrs. Burrus to prepare the returns. During the years in issue, petitioners did not have financial statements prepared for Maple Row, nor did they seek advice from any outside management or agricultural consultant regarding Maple Row. Petitioners’ accountant did not advise petitioners regarding 5 The entries for cattle sales sometimes specified the number and gender of the animals sold and sometimes did not. Where specified, the ledgers in evidence recorded bull sales ranging from $1,847 to $2,100 per bull, and heifer sales at $850 per heifer.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011