- 8 - petitioner listed expenses in categories such as travel, telephone, and office rent. For income, he listed three sources: Commissions earned by Susanna, management income he earned, and miscellaneous income. In 1990, Susanna earned commissions from four transactions, and petitioners reported the income on their Schedules C. Sand Hill received these commission checks generally through escrow accounts, and petitioners deposited the checks into various bank accounts, including the Bank of America account. Petitioner did not include Susanna's consultation fee as income on the one-page summary of Sand Hill's income and expenses prepared for the Paus' accountant, even though he knew that she had received $150,000 as a consultation fee from Meiyan. Moreover, the same day Susanna deposited the check for $150,000 into the Bank of America account, petitioner wrote a check on that account payable to Susanna for the same amount, which she deposited into the BNP account. Another check for $50,000 was also debited on March 20, 1990. Prior to the deposit of the $150,000, the account contained a balance of $155,874.47. In completing Sand Hill's 1990 income and expense summary for petitioners' accountant, petitioner was aware of but intentionally failed to include the $840,000 from Sanrio. Petitioners did not tell their accountant of either omission from their summary. Neither the $150,000 fee nor the $840,000Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011