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compilations because the account contained too much personal type
information, including other income from investments.
In New Orleans, where petitioner practices medicine, an
occupational license tax was due to the city. This occupational
license tax was computed based upon a certain percentage of the
gross income of the business. Bruno and Tervalon did not prepare
petitioner's 1987 and 1988 occupational license tax forms.
Petitioner told Mr. Bruno that he deposited all of his
income into his First Federal checking account. He further
stated that he maintained a total of his income throughout the
year. When he brought his tax information to Mr. Bruno,
petitioner gave him a total gross income figure for the year.
Petitioner did not tell Mr. Bruno that he was cashing some
of his income checks at Circle Food Store, and that he did not
deposit such funds into his checking account.
Petitioner did not tell Mr. Bruno that he was cashing some
income checks at Liberty Bank, and that he did not deposit such
funds into his checking account.
Petitioner did not tell Mr. Bruno that he took income checks
to First Federal and that he exchanged those checks for bank
checks drawn on First Federal's suspense account.
Preparation of Petitioners' 1987 and 1988 Income Tax Returns
In preparing the Schedule C for the newspaper business for
1987 and 1988, Mr. Bruno's firm relied upon the information on
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