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completed it, the Form 1120S was submitted to Ronald Sahmel, an
OSG partner, who reviewed and signed it as the preparer on June
27, 2002.
The Form 1120S was then hand delivered to Robert Delgado at
Windsor's corporate offices. He signed it on July 1, 2002, in
his capacity as Windsor's corporate secretary and mailed it.3 The
Form 1120S included a Schedule K-1, Shareholder's Share of
Income, Credits, Deductions, etc., for petitioner, which reported
that petitioner had ordinary income of $587,938 from Windsor and
had received $412,000 in distributions. A copy of the Schedule
K-1 was issued to petitioner.
As filed, the Form 1120S did not separately state any amount
for "Compensation of officers" on line 7. Instead, an aggregate
figure of $426,743 for all compensation, both officers' and other
employees', was listed on line 8, "Salaries and wages (less
employment credits)". After the Form 1120S was filed, OSG
obtained information that Windsor's officer compensation for 2001
was $173,093. Thereafter, $173,093 was entered into the
electronically stored version of the Form 1120S on line 7 as
"Compensation of officers". However, no correlative adjustment
was made to line 8 for "Salaries and wages (less employment
credits)". Consequently, the $173,093 in officer compensation
3 Respondent received the Form 1120S timely on July 7, 2002.
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