- 4 - the amount of the check exceeded the cash amount received by Mr. Hamilton, he would then either deposit these excess funds into RBE’s account, or use them to purchase cashier’s checks payable to other coal companies. In total, Mr. Hamilton was involved in 52 separate transactions during 1988 in which he received cash or self-directed cashier’s checks totaling $510,888. Mrs. Hamilton conducted two such transactions during 1988 in which she received a total of $5,105 in cash. Overall, the entire amount petitioners received in 1988 from their transactions with Fidelity totaled $515,993. Petitioners timely filed their joint Federal income tax return for 1988 on which they reported an adjusted gross income of $21,840. That income comprised $7,600 in wage income Mrs. Hamilton received from H&S, interest income of $3,040, a dividend payment of $8,500, and sick pay in the amount of $2,700. Petitioners did not report any portion of the cash that they had received from the bank transactions with Fidelity. Petitioners were criminally indicted for willfully filing false Federal income tax returns for 1987 and 1988 in violation of section 7206(1). The indictment charged them with receiving income of $542,106 from the sale of coal that they failed to report on those returns. See United States v. Hamilton, 128 F.3d 996, 998 n.1 (6th Cir. 1997). Mr. Hamilton was also charged with willfully failing to file a Federal income tax return for 1989 in violation of section 7203.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011