- 7 -
75 percent of which he had to give to the Hoyt organization and
25 percent of which he could keep.
Petitioner received promotional materials from the Hoyt
organization, which he showed to other firemen who were Hoyt
participants but did not take to an attorney independent of the
Hoyt organization. One of those documents was similar to a
brochure entitled “The 1,000 lb. Tax Shelter”. That brochure
explained that the Hoyt partnerships were designed to provide
profits over time and emphasized that the primary return on
investment was realized through tax savings. The brochure
indicated that the benefit of participating in a Hoyt partnership
was that participants could obtain refunds of Federal income tax
paid in the previous 3 years by amending their returns for those
years so as to claim a carryback of investment tax credits
generated by the partnership. The brochure stated that each
partner had to pay 75 percent of the tax refunds to the Hoyt
organization as an investment in the cattle but could keep the
remaining 25 percent as a 30-percent return on investment. The
brochure stated that the Hoyt organization would prepare each
partner’s tax returns, and
would assist the Partners in claiming all the tax
savings available to them first, before entering the
Partnership numbers. If a Partner needs more or less
Partnership loss any year, it is arranged quickly
within the office, without the Partner having to pay a
higher fee while an outside preparer spends more time
to make the arrangements.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007