- 7 -
returns since the mid-1970's and prepared petitioner's Federal
income tax returns and Washington State excise tax returns for
1990, 1991, and 1992. For years prior to 1991, the accountant
prepared the returns using the bank statements and canceled
checks from petitioner's main bank account. Petitioner also
provided the accountant with Forms 1099 petitioner received for
interest and dividends. Petitioner wrote checks on the main
account for personal as well as business purposes. Using the
bank statements and checks, the accountant made assumptions as to
which payments were deductible business expenses. Petitioner did
not provide the accountant with bank statements and canceled
checks from the refund account or the monthly statements from the
billing services.
From 1974 until 1989, petitioner paid his former wife child
support of $250 per month and alimony of $400 per month. In
1989, petitioner and his former wife agreed that the entire
payment of $650 per month would be child support. During 1990,
1991, and 1992, petitioner did not pay alimony to his former
wife. The accountant, however, deducted alimony payments on the
1990, 1991, and 1992 returns, because petitioner had taken the
deductions in prior years.
Page: 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