- 18 -
Mr. Bruno and his firm determined the expenses and
deductions for the 1987 and 1988 income tax returns based upon
information furnished by petitioner, who labeled a group of white
envelopes with different types of expenses. These expenses
included those for the medical practice and the rental property.
After petitioner segregated his canceled checks by expense
category and placed them in the appropriate envelopes, he gave
the envelopes to Mr. Bruno when they met to discuss the
preparation of petitioners' 1987 and 1988 income tax returns.
After his meetings with petitioner regarding the 1987 and
1988 income tax returns, Mr. Bruno gave the Income Statement and
various envelopes to Ms. Walters. She added the various
expenses, determined the deductible expenses, and included those
on the income tax return. Ms. Walters prepared the 1987 and 1988
income tax returns based on the submitted information, and the
returns were subsequently reviewed by Mr. Bruno with Ms. Walters
present. Ms Walters had no direct discussions with petitioner
regarding the preparation of the 1987 and 1988 income tax
returns. Mr. Bruno ultimately signed the returns.
On one occasion, Ms. Walters asked Mr. Bruno if petitioner
could furnish his bank statements. Mr. Bruno advised that he had
requested the bank statements, but petitioner never furnished
them.
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011