Posted 8/18/2014 12:00 am
Updated 4 months ago
Roy E. Stanley, the longtime president of Fayetteville’s Lindsey Management Co. and current president of Lindsey Communications Inc., and his wife, Carol, are suing the Internal Revenue Service over the findings of an audit performed in October 2012.
The Fayetteville office of the IRS determined that the Stanleys income from real estate activities for tax years 2009 and 2010 should be reclassified from nonpassive income to passive income, resulting in additional taxes owed — $62,707 for 2009 and $49,721 for 2010, according to a notice of deficiency issued in July 2013.
In January, the IRS upped the total due to $122,141, and the couple paid the bill but then filed claims to get it back. When more than six months passed with no refund, the Stanleys sued the IRS on July 25 in federal court in Fayetteville.
Stanley, formerly general counsel for Lindsey Management, said he and his wife disagree with the revenuers’ position that “material participation in the management or operation” of apartment complexes and golf courses requires that a person be physically present on the sites.
For the tax years in question, he served as president or president emeritus and part owner, working half-time in management and operation from Lindsey Management Co.’s home office.
Stanley retired at the end of 2010 and ceased being a shareholder, but continues his ownership and duties at Lindsey Communications Inc.
Stanley is representing himself and his wife against the IRS.