- 27 -
Tax Returns
Petitioners filed returns for the years 1987 through 1989
that were prepared by Mr. Berlat.27 In those returns, petition-
ers reported gross receipts and net profit of NDV and total gross
income, as follows:
Gross Receipts Net Profit
Year of NDV of NDV Total Gross Income
1987 $323,509 $12,584 $21,094
1988 323,037 10,378 8,862
1989 350,540 20,262 20,372
During 1990, petitioners filed amended returns for each of
the years 1987 through 1989 that were prepared by petitioners'
accountant, Mr. Bailey, a certified public accountant (C.P.A.)
whom petitioners hired as their accountant during respondent's
examination of their returns for 1987 through 1989 because Mr.
Berlat was not a C.P.A. Petitioners indicated in each of those
amended returns that they had additional gross receipts of $5,200
attributable to "Cash - Register". Mr. Bailey prepared the
amended returns for the years 1987 through 1989 after he had
advised Mr. Katerelos that Mr. Phielix had informed him that
petitioners had underreported the gross receipts of NDV for those
years.
Mr. Bailey prepared petitioners' returns for 1990, 1991,
27 Both parties acknowledge that Mr. Berlat made certain errors
in preparing petitioners' returns for the years 1987 through
1989. However, neither party has suggested that those errors
should affect our findings or conclusions herein.
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011