Joseph F. and Caroline Enos - Page 30

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         light of the large number of payments made by MMI to petitioners             
         after the December 15, 1978, payment agreement between MMI and               
         respondent, and, significantly, where many of those payments by              
         MMI to petitioners, reflected on petitioners’ business ledger, do            
         not appear to have been made by check or other negotiable                    
         instrument.  We find petitioners’ contentions on brief that these            
         payments represent “partial advance payments” to be incredible,              
         especially in light of the following facts:  After the December              
         15, 1978, payment agreement, respondent received less than                   
         $10,000 from MMI, while, at the same time, petitioners’ business             
         ledger reflects that they received over $210,000; petitioners                
         knew that MMI was having significant financial troubles; and                 
         petitioners participated in the negotiations between respondent              
         and MMI.                                                                     



              12(...continued)                                                        
                    your tax liability back then was around $310,000 as               
                    indicated in the levy?                                            
                    A. Right.                                                         
                    Q. And they served a levy on Metals to collect that,              
                    all properties in their possession up to $310,000?                
                    A. Right.                                                         
                    Q. Are you saying they paid you money after the levy              
                    was served which was attributable to money owed by                
                    Metals to you before the levy was served?                         
                    A. Before the levy was served for amounts over and                
                    above the levy.  Once the levy was served, that locked            
                    in the 310.                                                       




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