- 7 - In addition to the checks received by petitioner in 1987 and 1988, he would also receive cash from some patients, usually $50 to $100 per week. He did not include this cash in the calculation of his income. In the Schedule C for petitioner's medical practice, gross income was reported in the amounts of $402,000 for 1987 and $250,000 for 1988. Petitioner understated the Schedule C gross income from his medical practice in the amounts of $175,285 for 1987 and $191,979 for 1988. The correct gross income received from his medical practice was $577,285 for 1987 and $442,262 for 1988. There was a 30-percent omission of gross income in 1987 and a 43-percent omission in 1988. Petitioners' Return Preparers From 1978 through 1990 petitioners' Federal income tax returns were prepared by their accountant, Mr. Bruno, and his accounting firm, Bruno and Tervalon. Mr. Bruno was managing partner of the firm. Marie Walters, a C.P.A., assisted Mr. Bruno in preparing petitioners' income tax returns for 1987 and 1988. Petitioner's Banking Practices at First Federal Savings Bank Petitioner had a checking account in his name at First Federal Savings Bank (First Federal) in which he deposited checks received from personal injury lawyers. Prior to 1987, he deposited into that account all the checks he received. But hePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011