- 7 -
D. Petitioner’s Employee Compensation
The compensation petitioner paid Mr. Reeves each year from
1982 through 1996 was:7
FYE June 30 Compensation
1982 $15,707
1983 16,100
1984 26,000
1985 42,000
1986 47,000 (includes $18,240 bonus)
1987 11,000
1988 -0-
1989 22,444
1990 4,000
1991 -0-
1992 -0-
1993 310,000
1994 182,300
1995 2,278,000 (includes $2 million bonus)
1996 1,012,000 (includes $1 million bonus)
From FY 1982 through FY 1992, Mr. Reeves’s salary remained
low or he was unpaid so that profits could be invested to expand
petitioner’s business. Beginning in FYE June 30, 1993,
petitioner’s business improved, and profits substantially
increased. Petitioner deducted the compensation paid to Mr.
Reeves as officer compensation on its Forms 1120, U.S.
Corporation Income Tax Return, in the fiscal years at issue.
In FYE June 30, 1995, petitioner paid $374,884 in salary and
wages to its employees including $95,000 in bonuses, and in FYE
June 30, 1996, petitioner paid $348,837 in salary and wages to
7 The table does not include amounts UMI or CTC paid to Mr.
Reeves.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007