- 6 - Layland, and she did not find it unusual that petitioner’s father handled the tax matters because that type of situation occurred with other clients. Ms. Layland was often frustrated by the inadequate and inaccurate tax preparation records petitioner’s father submitted to her. For example, the cashflow statement for K&L Exteriors for the taxable year 1993 reflected gross receipts of $160,397, while the Forms 1099 filed by clients of the business reflected a lesser amount ($111,516). Through communications with petitioner’s father, Ms. Layland came to realize that the cashflow statement figure was incorrect. Accordingly, she reported the amount reflected on the Forms 1099. Petitioner’s father also commingled petitioner’s personal and business expenses, which Ms. Layland attempted to distinguish and separate. Ms. Layland did not contact petitioner about any of these matters. She dealt exclusively with petitioner’s father, who resolved these matters to Ms. Layland’s satisfaction. On one occasion, Ms. Layland questioned petitioner’s father about a loss on petitioner’s 1993 Schedule C, Profit or Loss From Business. Petitioner’s father responded with new figures which reflected a small profit. For taxable years 1993 and 1994, Ms. Layland also prepared Four Square’s corporate returns for petitioner. Because Four Square was incorporated solely for K&L Exteriors’ payrollPage: 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