- 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