Winston Knauss - Page 14

                                       - 14 -                                         
          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.                                                       









Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011