- 8 - paid for the purchase of a 1960 Ferrari;4 (5) on July 2, 1987, Ms. Allen was paid $31,800; (6) on July 9, 1987, income taxes of $8,472 were paid to the Internal Revenue Service (IRS); (7) on July 28, 1987, $12,000 was paid to Mid America Exotic Auto Sales; (8) on July 30, 1987, income taxes of $1,482 were paid to the IRS; (9) on September 17, 1987, child support of $10,000 was paid to Ms. Allen; (10) on October 9, 1987, a house payment of $30,000 was paid to Mr. and Mrs. Melitshka with respect to petitioner’s personal residence; (11) on November 2, 1988, political contributions of $2,800 were paid. None of those payments from the law firm’s trust account were reported as income by petitioner. Mr. Kelly prepared petitioner’s Forms 1040, U.S. Individual Income Tax Returns, for 1983 through 1988.5 Petitioner provided Mr. Kelly with spreadsheets which reflected deposits into, and expenditures from, petitioner’s bank accounts for the years 1983 through 1988.6 Those spreadsheets provided the basis for preparing petitioner’s tax returns for those years: The income 4The bill of sale and the application for a temporary tag for the Ferrari were in the name of Mr. Miles’s law firm; however, petitioner was its actual owner. 5Mr. Kelly is a certified public accountant who has known petitioner since 1975. Mr. Kelly and petitioner were members of the Ferrari Club of America. 6The spreadsheets were prepared by Ms. Allen at petitioner’s request. Petitioner provided Ms. Allen guidance in preparing the spreadsheets.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