- 57 -
substantially understated the gross receipts of Design Consul-
tants, including commissions received from Greyhound and/or
Mayflower, for each of the years 1986, 1987, and 1988,
(b) petitioners substantially understated the gross receipts of
White Star for the year 1988, and (c) petitioners substantially
understated their rental income for each of the years 1986, 1987,
and 1988; (2)(a) Ms. Olbres recorded in the cash receipts jour-
nals only those Design Consultants' and/or White Star's receipts
that petitioners deposited into the Indian Head business checking
account, and a person examining those journals and no other
written records of Design Consultants and/or White Star would
have no idea that Design Consultants and/or White Star received
income in addition to their respective receipts that petitioners
deposited into the Indian Head business checking account, and
(b) a person examining both the cash receipts journals and the
invoice logs that Ms. Olbres maintained would have no idea that
Design Consultants and/or White Star received commissions in the
amounts paid to them by Greyhound and/or Mayflower; (3) petition-
ers failed to provide Mr. Dennett, their accountant, with com-
plete information from which he could have accurately prepared
their 1986, 1987, and 1988 returns; (4) the original invoice logs
were not available at trial, and Ms. Olbres periodically de-
stroyed the copies of portions of the invoice logs that she had
brought to petitioners' house; (5) the testimony in this case of
Page: Previous 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 NextLast modified: May 25, 2011