8 E. Postpetition Conferences Petitioner's case was assigned to an Appeals officer sometime after petitioner filed its petition. Respondent's revenue agent Bruce Zaer (Zaer) met with petitioner's counsel on May 15 and July 11, 1997, to discuss petitioner's case. At the July 11 meeting, petitioner's counsel told Zaer that petitioner had erroneously reported earnings and profits on an accrual basis rather than on a cash basis on its 1991 tax return. As a result of the error, petitioner erroneously included accounts receivable of about $662,000 in accumulated earnings. Petitioner reported on its 1991 return that its accumulated earnings were $853,837, while in fact they were only about $190,000. Around July 17, 1997, petitioner's accountant prepared a corrected analysis of petitioner's accumulated taxable income for FY 1986 to 1994.7 He concluded that petitioner had accumulated taxable income of $340,611 for FY 1992, $501,955 for FY 1993, and $615,005 for FY 1994. Respondent's Appeals officer reviewed the accountant's analysis and agreed with it. On August 14, 1997, respondent conceded the accumulated earnings tax issue. F. Settlement of the Case At the calendar call on September 15, 1997, the parties announced that they had reached a basis of settlement. The 7 In his corrected analysis, petitioner's accountant concluded that petitioner's accumulated earnings for fiscal year 1991 were about $110,000.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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