Sue Taylor - Page 27

                                       - 27 -                                         
         1065 and completely omitting Speck’s address on the Form 1065,               
         Schedule K-1 attached to National Land Bank’s 2000 Form 1065 in              
         the context of this case appears to the Court to be deliberately             
         deceptive and does not, given Mr. McGlothlin’s testimony,                    
         establish two different taxable entities.                                    
                        b.   Krismon Buttes’s $70,000 Check Is Taxable to             
                             Petitioner                                               
              Petitioner did not provide any evidence demonstrating an                
         independence from or a dissociation with Speck or Property                   
         Resources.  Speck issued Krismon Buttes an invoice in the amount             
         of $70,000 for marketing services rendered.  Krismon Buttes                  
         issued Speck check No. 1023, which never cleared Krismon Buttes’s            
         checking account.  Subsequently, Krismon Buttes issued check No.             
         1027 in the amount of $70,000 to Property Resources as a                     
         replacement for check No. 1023.  The Court is skeptical that                 
         Speck would provide marketing services worth $70,000 to Krismon              
         Buttes but, absent a quid pro quo, allow Krismon Buttes to                   
         deliver payment to Property Resources.  Petitioner fails to                  
         explain this.  Instead, at trial, petitioner asserted a Fifth                
         Amendment privilege when asked whether she was compensated for               
         marketing services she provided to Krismon Buttes.                           
              This is an indication that any facts which could have been              
         presented by her at trial would have been unfavorable to her                 
         position.  Petzoldt v. Commissioner, 92 T.C. 661, 691 (1989)                 






Page:  Previous  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  Next

Last modified: May 25, 2011