- 8 - Item 1989 1990 Deposits to bank $68,975.82 $70,669.74 Less: Auto expenses 10,710.25 - Insurance reimbursed 2,591.84 5,211.40 Accounts payable 13,338.00 - Dues/publications 49.50 - Outside services 505.83 - Refunds 175.00 - Accounts receivable (825.00) 15,469.78 Total 26,545.42 20,681.18 Income per petitioners 142,430.40 49,988.56 1 The parties stipulated that the amount of income computed by petitioners for the 1989 fiscal year was $42,430.10, whereas the supporting amounts stipulated by the parties results in income of $42,430.40. Petitioners also maintained a bank account for Gold at the Bank of Lodi. The existence of Gold’s Bank of Lodi account was not brought to the attention of respondent’s agent by petitioners. Respondent’s agent discovered the Bank of Lodi account from a review of canceled checks obtained from third-party sources (Gold’s clients). Petitioners deposited some clients’ payments for services by both M&M and Gold in the Bank of Lodi account for the fiscal years 1987, 1988, 1989, and 1990. Petitioners did not report the Bank of Lodi deposits in Gold’s income. For 1989, checks were written on the Bank of Lodi account to Maynard and McDonald in the total amounts of $20,421 and $6,024, respectively. Neither Maynard nor McDonald reported funds for 1989 from Gold’s account with the Bank of Lodi. Respondent determined that Gold’s income for the 1989 fiscal year was understated by $63,581 and that $29,292 of deductions were not allowable. Gold’s petition to this Court was dismissedPage: 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