- 10 -
May 19, 1985, in the amount of $13,100 and on November 29, 1986,
in the amount of $10,700.
Income Tax Returns
Petitioners' accountant, David Nyden (Nyden), prepared
petitioners' U.S. Individual Income Tax Returns (Forms 1040) from
1978 through the years in issue.
Each month Nyden would go to B&K Variety, Arturo's, or
petitioners' home to pick up monthly financial records for B&K
Variety. The records included bank statements, check stubs,
bills, and day sheets. A day sheet reflected the gross cash
receipts and cash payouts for a particular date. Petitioner
summarized the cash transactions on the day sheet and then gave
the day sheet to Nyden.
Nyden would reconcile the day sheets with bank deposits into
the B&K Variety bank account. Nyden used the monthly bank
statements and the day sheets to calculate the gross receipts for
B&K Variety that he reported on petitioners' Schedules C for
1984, 1985, and 1986. Petitioner used a cash register at B&K
Variety from 1984 through 1986, but Nyden did not use the cash
register tapes to prepare petitioners' returns.
Petitioner provided Nyden with receipts related to the
farming activity conducted on the Campfield farm. At the end of
the year, Nyden and petitioner would discuss the farm activities,
and petitioner would give Nyden receipts for income and expenses.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011