- 10 -
Representations Made During Audit
During audit, the examining agent conducted several
interviews of petitioners, Trent, and other related parties.
Regarding the practice of cashing checks, Trent, informed by
petitioners, represented in several interviews that all income of
Flair Enterprises was deposited during the years in issue.
Mrs. Haney represented that she did not cash any checks after
Steelman left in November 2000. Regarding the existence of a
petty cash fund at Flair Enterprises, Trent represented that the
company had no petty cash fund and that none was reflected on the
company’s books.
Regarding the B&H supply agreement, Gina Haney, through
Trent, told the examining agent that there was no written
agreement between Flair Enterprises and B&H. One of B&H’s
representatives stated that B&H does not sponsor racers and that
the monthly payments from B&H to Flair Enterprises did not amount
to a racing sponsorship, although petitioners may have wanted to
characterize them in that manner.
Flair Racing, Inc.
Petitioner formed Flair Racing in order to limit the
liability of petitioners and Flair Enterprises related to certain
Legends race cars owned by petitioner. Legends race cars are
5/8-scale replicas of 1930s and 1940s sedans.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: November 10, 2007