- 12 - Park and Mr. Hwang, petitioner's accountants for the years in issue, were recommended by Mr. Yoon. The deposits into the client trust account were included in the general ledger as receipts of the firm. Petitioner's 1988, 1989, and 1990 Federal income tax returns were all filed more than 3, but less than 6, years prior to respondent's mailing of the notice of deficiency on July 7, 1995. Petitioner's 1991 Federal income tax return was filed on October 15, 1992. The 162 Disputed Checks3 Petitioner was aware that some of the 162 disputed checks came into his law firm. Petitioner did not personally cash settlement checks. Mr. Yoon frequently paid cash to clients of the firm. Mr. Yoon specifically instructed the firm's employees who witnessed these cash payments not to tell petitioner that cash disbursements to clients were being made. In 1988 and early 1989, petitioner authorized Mr. Yoon to cash occasional settlement checks. This policy (to petitioner's knowledge) stopped in 1989 because the office moved to a building in which one of the firm's banks was located, facilitating immediate payment or cash availability from insurance settlement checks. 3 The checks in dispute are referred to by the item numbers as marked in the record. Two of the disputed checks are no longer at issue pursuant to the parties' stipulation of settled issues. Additionally, items 102 and 103 are not cashed checks but rather were deposited by petitioner into the Mitsui Manufacturers Bank account discussed infra.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011