Harvey L. Hoover - Page 5

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          Farm Business                                                               
               From the 1970s through 1992, farming was petitioner’s                  
          primary source of income.  Michael Hoover and Tadd Hoover worked            
          for petitioner during the years in issue.                                   
               Beginning in the late 1970s and continuing through 1992,               
          petitioner’s farming activities included a dairy herd operation.            
          During the years at issue, petitioner’s dairy herd consisted of             
          approximately 60 cows, 30 heifers, and 17 calves.  Petitioner               
          sold all the milk produced by his dairy herd to Best Ever Dairy             
          of Anderson, Indiana (Best Ever Dairy), from 1989 to 1992.5                 
               Before October 31, 1988, Best Ever Dairy issued one check              
          made payable to petitioner for each milk purchase.  By letter               
          dated September 27, 1988, petitioner instructed Best Ever Dairy             
          to issue two checks for each milk purchase.  Petitioner directed            
          Best Ever Dairy to issue one check payable to Michael Hoover in             
          an amount equal to one-half of the amount due and a second check            
          payable to petitioner for the balance.  Best Ever Dairy complied            
          with petitioner’s instructions beginning with its payment made on           
          October 31, 1988.  Petitioner did not give any of the milk                  
          proceeds to Michael Hoover.                                                 
               After petitioner’s September 27, 1988, letter, petitioner              
          sent an undated letter to Best Ever Dairy that revised the                  


               5 From 1988 to 2003, Best Ever Dairy has been known as Best            
          Ever Dairy, East Side Jersey Dairy, and Prairie Farms Dairy.                




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Last modified: May 25, 2011