- 19 - any of the records at Reaves Livestock, including First Citizens records. He sometimes visited the business to meet with Wright or Lawson when Mr. Reaves was not present. Mr. Reaves did not know what information Wright or Lawson gave to Davis. Davis used Reaves Livestock's journals and ledgers to prepare its tax returns, but he did not verify their accuracy. He generally asked Wright or Lawson any questions he had about journal entries. He did not review Reaves Livestock's bank account statements or canceled checks to prepare its corporate tax returns. He sometimes did a quick net worth evaluation in December. He did not perform any monthly services for Reaves Livestock or for Mr. and Mrs. Reaves. Each December, Davis and Mr. Reaves discussed Reaves Livestock's performance and its likely tax liabilities. After he prepared the tax returns for Reaves Livestock and Mr. and Mrs. Reaves, Davis brought the returns to Mr. Reaves. Davis briefly reviewed them with Mr. Reaves before Davis filed them. 2. Mr. and Mrs. Reaves' Income Tax Returns Mrs. Reaves decided which of her and Mr. Reaves' personal records to give to Davis. She searched their canceled checks for potential income tax deductions. She gave Davis bank statements, Forms W-2 and 1099, and canceled checks which she believed substantiated their deductions. The First Citizens accounts paid interest (in an amount not stated in the record) which neither Mr. and Mrs. Reaves norPage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
Last modified: May 25, 2011