Wale O. Osijo - Page 7

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          Petitioner refused to sign that document and disputes its                   
          accuracy.  However, petitioner did receive from Ms. Michell a               
          check for $131,537.05 sometime during 1993.  Petitioner began to            
          pursue legal remedies against Ms. Michell in the California                 
          courts for legal malpractice.  Part of those measures are still             
          pending.  Suffice it to say that, at the time of trial before               
          this Court, it has been held that Ms. Michell had breached her              
          contract with petitioner and had claimed excessive fees.                    
               Beginning in 1993, several family members and friends came             
          to petitioner to have their 1992 Federal income tax returns                 
          prepared by him because they knew petitioner had a strong                   
          background in business administration and taxation.  Petitioner             
          credibly testified that he prepared no more than 10 tax returns             
          in 1993.  Petitioner stated that he may have charged as much as             
          $200 per return, but he is not sure whether he collected from               
          everyone the money owed to him.  In 1994, petitioner prepared               
          between 10 and 15 returns, including one for a friend whom he               
          charged $450.                                                               
               The Commissioner’s determination in the notice of deficiency           
          is presumed correct, and petitioner bears the burden of proving             
          otherwise.  Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933).           
          Where a taxpayer has not filed a tax return, respondent may                 
          reconstruct a taxpayer’s unreported income.  Holland v. United              

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