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to him for 1989. Maynard testified that all payments to
petitioners for 1989 from the Bank of Lodi were his income or
expense reimbursement.
Gold, during 1989, paid the California Society of Certified
Public Accountants $16,325.36 for health insurance for several
individuals, including petitioners. One of those individuals was
McDonald’s former accounting partner, who reimbursed Gold
$2,765.44 for his portion of the insurance. The remaining
insured individuals were petitioners and members of their
families. Although petitioners prepared returns on behalf of
Gold, they claim to have not received any compensation other than
the monthly automobile reimbursement and insurance coverage.
Maynard did not have a personal bank account, and he paid
bills with cash or checks from the checking account of another
individual. McDonald and Maynard, during 1989, made cash
purchases of numerous cashier’s checks in amounts of $10,000 or
less for various purposes. Maynard purchased two $7,500
cashier’s checks on June 8, 1989, from two separate banks. On
that same date, McDonald purchased a $9,000 and a $10,000
cashier’s check from separate banks. A series of cashier’s
checks, including the ones purchased on June 8, 1989, was used as
part of the purchase price of a residence which was placed in the
name of McDonald’s wife. McDonald purchased numerous cashier’s
checks, mostly with cash, during 1989. The dates, amounts, and
bank locations were as follows:
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Last modified: May 25, 2011