Kim Beauchamp - Page 7

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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