Kim Beauchamp - Page 8

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          services; or the checks were payable in amounts petitioner                  
          normally charged for office visits--so he included these payments           
          in the schedules.                                                           
               Respondent determined that petitioner underreported his                
          gross receipts by the following amounts deposited, in the form of           
          checks from patients and cash, into his three bank accounts:                
          Petitioner's                                                                
          Year  APSB Acct. #1  APSB Acct. #2      SPB Acct.     Total                 
          1988      $34,082        $415           $15,795      $50,292                
          1989      37,037         ---            21,934         58,971               
          1990      53,577         ---            13,911         67,488               
          Dr. Beauchamp's Real Estate Activity                                        
               Ms. Choe was the owner of the following real property (Ms.             
          Choe's properties):                                                         
               15149 Mission Hills Road, Mission Hills, Cal.                          
               14850 Ryan Street, Sylmar, Cal.                                        
               14708 and 14714 Chatsworth Street, Mission Hills, Cal.                 
               14640 Brand Boulevard, Mission Hills, Cal.                             
               11031 and 11038 Burnet Avenue, Mission Hills, Cal.                     
               11065 Arleta Avenue, Mission Hills, Cal.                               
          Petitioner paid the mortgages on Ms. Choe's properties.                     
               Prior to 1988, petitioner entered into an oral agreement               
          with Ms. Choe pertaining to real estate related activities.                 
          Under the agreement, petitioner supervised the improvement of Ms.           
          Choe's properties (including the demolition of existing                     
          structures and the construction of two family residences).5  In             

               5  Petitioner was not a licensed contractor in the State of            
          California, but he had a lifelong interest in "tinkering" with              
                                                             (continued...)           




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