- 3 -
petitioner had prepared income tax returns,3 but no bank
statements.
From the customer logs provided and various books of
receipt, respondent’s tax examiner (the examiner) computed income
from petitioner’s business activities as follows:
Originally
Business Reported Per AuditUnderstatement
Insurance sales $7,481 $63,394 $55,913
Tax return preparation -0- 24,000 24,000
Other services -0- 2,480 2,480
7,481 89,874 82,393
In addition, the examiner also determined that petitioner
received interest income from personal loans he made. The
examiner also verified through Forms 1099 that had been received
by respondent that petitioner’s interest income for 1990 was
understated. The examiner verified interest income of $15,414,
resulting in an understatement of interest income of $9,179. The
record does not reflect whether any interest from the personal
loans was included in this amount. Therefore, the actual
understatement of interest income could have been larger than
$9,179.
On August 4, 1997, petitioner pleaded guilty to one count of
willfully making and subscribing a false income tax return under
section 7206(1) for 1990. Petitioner was voluntarily deported
from the United States to Haiti as a result of his guilty plea,
3Petitioner admitted preparing over 1,500 returns (of which
approximately 20 percent were prepared for free), though there
were records for only 1,080 returns.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011