- 2 - to the 1986 tax year is whether the period of limitation on assessment has expired. We conclude that assessment is barred, and, therefore, the other issues are moot. All section references are to the Internal Revenue Code in effect for 1986, and all Rule references are to the Tax Court Rules of Practice and Procedure. FINDINGS OF FACT At the time John Maloney and Mary Maloney filed their petition, they resided in Perkiomenville, Pennsylvania. Mr. Maloney is a mechanical engineer, and from approximately 1969 to 1989, he operated a sole proprietorship and employed the accounting services of Robert Butler. Each year, Mr. Maloney provided Mr. Butler with check stubs, bank statements, and information relating to his accounts receivable and payable. Mr. Butler used this information to prepare balance sheets, income statements, trial balances, general ledgers, cash disbursement journals, and, ultimately, petitioners' Federal income tax returns. Mr. Maloney believed that Mr. Butler used the accrual method of accounting to prepare these records and returns. From 1984 through 1986, Mr. Maloney was the project engineer for a prison being constructed in Montgomery County, Pennsylvania. During this period, Mr. Maloney on a monthly basis billed the county, which in turn, paid him by check. In 1984, the county paid Mr. Maloney $409,624.55. In early 1985, thePage: Previous 1 2 3 4 5 6 7 8 Next
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