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Respondent bolstered his documentary evidence with witness
testimony. Kathryn Hill, a former employee of Dr. Trowbridge’s,
testified that she had prepared the practice summaries each day
as part of her duties and that she had derived the month-to-date
and year-to-date collections listed thereon from the daily cash
analysis reports prepared by other personnel. Ms. Hill further
testified that, as sometimes reflected in her handwritten
notations on the daily cash analysis reports, she had transferred
cash receipts directly to Dr. Trowbridge and had used patients’
checks to pay third party creditors of the medical practice
whenever Dr. Trowbridge so requested, rather than depositing such
amounts in any of the medical practice bank accounts. Ms. Hill’s
testimony is consistent with that of William Williams, an IRS
agent who testified that, in his review of the medical practice
bank account statements, he had been unable to find deposits
corresponding to numerous checks and cash receipts recorded in
the daily cash analysis reports.
Dr. Trowbridge’s own daily records establish the gross
receipts of the medical practice in 1996, and the testimony of
Ms. Hill and Mr. Williams satisfactorily explains the large
discrepancy between that amount and the aggregate bank deposits
on which respondent based the initial 1996 deficiency.
15(...continued)
Oct. 28, 1996, that we believe respondent overlooked.
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