- 7 - needs, Four Square’s receipts matched its expenses, and its corporate returns did not reflect taxable income. Petitioner’s 1992, 1993, and 1994 income tax returns were filed on May 4, 1993, May 16, 1994, and May 8, 1995, respectively. The Schedules C attached to petitioner’s 1992, 1993, and 1994 income tax returns reflected taxable income of $635, $304, and $360, respectively. All three returns were signed by petitioner and dated April 29, 1993, May 8, 1994, and May 3, 1995, respectively. As with other documents relating to K&L Exteriors and Four Square, petitioner did not read or review them before signing. At the time of signing the 1992, 1993, and 1994 returns, petitioner believed the information reported was accurate. Petitioner now agrees that the gross income from his construction business was understated by $9,690, $37,204, and $52,440 for 1992, 1993, and 1994, respectively. He also agrees that interest income was understated by $24 and $11 for 1992 and 1993, respectively. During August 1994, petitioner, in the process of obtaining a personal loan, estimated his monthly income to be $3,200. At this time, petitioner was receiving a $350 weekly check from his father. In December 1994, petitioner sought another loan in order to purchase a home. Petitioner knew that he had to have a certain level of income to qualify for a home loan. In responsePage: 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