- 9 -9 Ferrentino's Guilty Plea to Filing a False Tax Return On April 13, 1995, Ferrentino pleaded guilty to a one count information charging him with willfully making and subscribing to a false and fictitious U.S. income tax return for the year 1988 in violation of section 7206(1). On January 29, 1996, Ferrentino filed Forms 1040X, Amended U.S. Individual Income Tax Return, for the taxable years 1988, 1989, and 1990, which reported additional income in the amounts of $30,975, $28,870, and $32,572, respectively. Respondent Issued Notices of Deficiency After the 3-Year Period of Limitations on Assessment Had Expired Ferrentino filed timely tax returns for the 1988, 1989, and 1990 taxable years. AJF, on the other hand, filed its tax returns late. AJF filed its 1988 and 1989 tax returns on May 10, 1991, and its 1990 return on July 17, 1991. Respondent mailed notices of deficiency on August 13, 1996, with respect to petitioners' 1988, 1989, and 1990 income tax returns. The general 3-year period of limitations on assessment under section 6501(a) expired before the issuance of the notices of deficiency in these consolidated cases. Circumstances Surrounding the Late Filing of AJF's Tax Returns John Witkowski, C.P.A. (Witkowski), prepared AJF's tax returns during the years in issue. When preparing the returns, Witkowski relied on AJF's books and records, which included receipts journals, disbursement journals, payroll records, and bank reconciliations. Witkowski determined AJF's gross incomePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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