- 5 - Expenses 1993 1994 1995 Car and truck $2,774 $1,776 $2,776 Forms 10994 178,340 148,900 105,910 Depreciation 3,637 -0- 3,109 Insurance 4,125 4,125 4,775 Legal 670 510 820 Office expenses 472 378 4,258 Repairs 668 569 2,569 Supplies 12,944 23,918 21,458 Taxes and licenses 512 312 518 Utilities 1,198 998 2,797 In 1996, the IRS examined Mr. Furnish’s tax returns. Sometime before the audit, Mr. Buckner became seriously ill and was hospitalized. The doctors told Mr. Buckner’s wife that Mr. Buckner was dying and that he would not last another week. At this time, without Mr. Furnish’s knowledge or consent, Mr. Buckner’s wife threw out all of Mr. Buckner’s client records, including Mr. Furnish’s records. During the time the examination was being conducted, Mr. Buckner died. After he learned that his records had been destroyed, Mr. Furnish went to suppliers to try to obtain records of what he paid them. With few exceptions, no records existed other than the ones that he had given to Mr. Buckner (which were destroyed). Mr. Furnish sold his car and hired an attorney to represent him during the IRS examination. After a short period of time, 4 These figures represented amounts Mr. Furnish paid to carpenters and laborers he hired to help him with his construction work.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011