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Illinois as a C.P.A. in about 1966 and maintained that license
for approximately 20 years. He thereafter ceased to renew the
license because he had not fulfilled continuing education
requirements. Mr. Goltz similarly obtained a license to practice
law from the State of Illinois in 1967 or 1968, and he maintained
the license until he was disbarred in 1985 or 1986.
After being introduced to Mr. Deihl, Mr. Goltz was engaged
by Mayor as an independent contractor to perform part-time
accounting and consulting work. During 1994 or 1995, Mr. Goltz
was hired as a full-time employee and provided with an office at
the corporate headquarters where he displayed the various
professional degrees and certificates pertaining to his career as
a C.P.A. and attorney in Illinois. By 1996, the first of the
years in issue, Mr. Goltz served as the accountant and CFO for
both Mayor and KareMor. Mr. Goltz prepared the original income
tax returns for petitioners, Mayor, and KareMor for 1996 and
1997.
As the businesses grew throughout the years in issue,
Mr. Goltz became overwhelmed with the volume of work. An
individual hired to assist him proved to be a poor fit for the
companies and failed to relieve the burden. The business and tax
records were not computerized and were manually prepared.
Mr. Goltz estimated substantially all of the expense items,
including the inventory for both companies. As he testified:
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