Opinion ID: 199059
Heading Depth: 2
Heading Rank: 2

Heading: Westfield Gage Co.

Text: 6 In 1955, petitioner founded Westfield Gage Co., a corporation which manufactures precision parts for airplanes and jet engines. Since its inception, petitioner has been the company's president and sole shareholder. Over the years, he generally worked seven or eight hours per day at Westfield Gage. 7 Petitioner did not prepare a written business plan, conduct economic or business studies, or hire consultants for Westfield Gage. However, when the corporation was having financial difficulties, Westfield Gage's treasurer, Eugene Kida, prepared budgets. In addition, petitioner testified that, if Westfield Gage was losing money, he would have sought advice on how to turn the business around. He explained that Westfield Gage had to make money . . . so I could pay for my horses. 8 From 1979 to 1993, Westfield Gage had a total taxable income of $8,842,137. It had gross receipts of $10,523,177 in 1992 and $9,707,359 in 1993; net profits for the same years were $972,058 and $102,470, respectively. 9 Mary Kuta was Westfield Gage's bookkeeper from 1955 to 1992. She kept Westfield Gage's books and records, filed its quarterly tax returns, and prepared its payroll. Eugene Kida, a certified public accountant with a master's degree in business administration, worked for Westfield Gage from 1984 to 1995 as company treasurer. Kida also prepared petitioners' personal income tax returns, which required that he examine petitioner's horse racing and breeding records. 10