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was paid to him as a finder’s fee for referral of a customer to
Marine Builders, Inc.
Petitioner did not inform his return preparer of any of the
foregoing payments, and they were not reported as income on his
1994 or 1995 returns.
Darling Yachts, Inc.
On February 23, 1995, petitioner filed suit against Darling
Yachts, Inc., seeking damages for breach of warranty, failure to
complete the vessel, and lost income in connection with the
contract to construct the Sir Winston. An Agreed Judgment in the
case was entered on March 18, 1995, which provided that
petitioner was entitled to recover $65,000 from Darling Yachts,
Inc., in satisfaction of his claims. The judgment further
provided that an initial installment of $25,000 was due upon the
execution of the judgment by the parties, with further monthly
installments of $1,000 commencing January 10, 1996. The judgment
was not executed until March 13, 1996. Pursuant thereto, Darling
Yachts, Inc., paid petitioner $65,000, of which $36,000 was paid
in 1996, and $13,000 was paid in 1997.
Petitioner did not inform his return preparer of the
foregoing payments, and they were not reported as income on his
1996 or 1997 returns.
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