Dennis C. Gandy - Page 31

                                       - 31 -                                         

          attention any expenses or receipts that were omitted from those             
               Petitioners' 1985 through 1987 Federal income tax returns              
          were filed reporting a status of married filing jointly.  The tax           
          returns for 1985 through 1987 were prepared by Shinn.  Shinn                
          prepared petitioners' 1985 through 1987 tax returns from                    
          information supplied to him by petitioners, bank statements,                
          deposit tickets, canceled checks, and check stubs from the                  
          nursery bank account.  Petitioners did not provide Shinn with the           
          ledgers or inform him of their existence.  Petitioners never told           
          Shinn about the checks payable to the nursery that were cashed or           
          about those deposited into accounts other than the nursery bank             
          account.  Mrs. Gandy never gave personal checking account                   
          information to Shinn.  It was Shinn's understanding that                    
          petitioners used the nursery bank account for their personal                
          expenses and that they did not have a personal checking account.            
               Shinn followed the method that had been used by the preparer           
          of petitioners' 1984 tax return.  The records from the nursery              
          bank account were used by Shinn to compute the gross receipts of            
          the nursery.  Mr. Gandy represented to Shinn that the deposits              
          that were identified as being from Burnice Gandy were loans.                
          Shinn did not include any cash income or expenses when preparing            
          Schedule F.                                                                 

Page:  Previous  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  Next

Last modified: May 25, 2011