-193-
The payments to the Ballard and Lisle children from KWJ
Corp. and KWJ Partnership totaled $323,000, as summarized below:
Year KWJ Partnership KWJ Corp.
1982 -- $21,000
1983 -- 36,000
1984 $38,000 --
1985 147,000 --
1986 49,000 --
1987 48,000 --
1988 48,000 --
1989 236,000 --
Total 266,000 57,000
1 Melinda Ballard received a total of $11,000 in 1985 and
$13,000 in 1986. Melinda Ballard, Transcr. at 3743-3744.
2 Of the $36,000 paid in 1989, Lisle’s children received at
least $18,000, and Ballard’s children received at least $12,000.
Exhs. 431, 957.
Exh. 17, at 16, l. 23 (1982); Exh. 18, at 20 (1983); Exh. 176, at
2, 5, 6, 8, 11, 12, 13, 15, 16, 18, 20; Exh. 475, at 1, 3, 5, 6,
8, 10, 12, 14, 16, 18, 20; Exh. 479; Albrecht, Transcr. at 919
(1984 to 1989).
In early February 1990, after the Internal Revenue Service
began examining Ballard’s, Kanter’s, and Lisle’s tax returns for
the years at issue, Kanter sent letters to Ballard’s and Lisle’s
children terminating their “consulting arrangement”. Exhs. 476,
9009. In his letter to Amy Albrecht, Kanter stated that
“fundamentally no services appear to have been performed for a
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