- 15 - the yearend financial statement or the trial balance. This had been prepared as a part of its full accounting services and was based upon information furnished by Mrs. McKenna. For the remaining items on petitioners' Federal income tax returns, petitioner always brought the information necessary for the preparation of the returns to Mr. Bruno. This would include the information relating to his medical practice, all Forms W-2 and 1099, all information regarding rental property, and all other information relating to personal items. For petitioners' 1987 and 1988 returns, Marie Walters took the information given by petitioner to Mr. Bruno, compiled that information, prepared the tax returns, and returned them to Mr. Bruno for review. For the taxable years 1987 and 1988, Mr. Bruno had discussions with petitioner advising him that petitioners' total income had to be reported on their tax returns and that there should be an attempt to reconcile the income going into petitioner's bank account with the income being reported. Petitioner was told that income taxable to him would include checks and cash that he received from his medical practice for the payment of services. For the preparation of the income tax return for 1987, petitioner gave Mr. Bruno a sheet on which he had written the words "Income Statement". He orally told Mr. Bruno that hisPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011