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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 nor
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