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Dr. Beauchamp's Bank Accounts
Petitioner told Mr. Jung that he had two bank accounts at
American Pacific State Bank: One account (APSB account #1) which
he used for both business and personal banking; and another
account (APSB account #2) which was a dormant savings account.
Mr. Jung discovered during the audit that petitioner had an
additional bank account at Security Pacific Bank (petitioner's
SPB account).
Mr. Jung summoned information regarding items deposited into
petitioner's three bank accounts. Mr. Jung analyzed petitioner's
bank accounts and determined that, in addition to payments from
Form 1099 payors, petitioner deposited substantial amounts of
personal checks and cash into his three bank accounts.
Mr. Jung prepared schedules of omitted income. Mr. Jung did
not include checks from insurance companies and other Form 1099
payors. Mr. Jung included checks from Joyce Choe (Ms. Choe) in
the schedules, but subtracted those amounts from the total of
unreported income. Mr. Jung excluded all items which he
determined were from nontaxable sources. Mr. Jung determined
that some deposits from business entities which did not issue
Forms 1099 were for medical services--the checks were made
payable to "Dr. Beauchamp" or "Dr. Beauchamp, M.D."; the checks
had indications in the memo section that they were for medical
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Last modified: May 25, 2011