- 20 -
retirement account to petitioner in 2003, and lost three houses
in foreclosure.
Lewellen settled the case with petitioner in October 2001,
and agreed to pay petitioner $220,000 in 2002.
D. Preparation and Filing of Petitioners’ Tax Returns
Petitioners filed income tax returns for 1995, 1998, and
1999. Lewellen prepared the 1995, 1998, and amended 1998 tax
returns, but not the 1999 return.
Lewellen recorded petitioner’s law firm's gross receipts for
1995 and 1998 on Schedule C, Profit or Loss From Business, based
on the total amount of revenues deposited in the firm's business
account and recorded as income in the general ledger under
“client billings”. Petitioners did not give Lewellen the law
firm’s accounts receivable, client billings, invoices or receipts
supporting the law firm’s expenses for 1995 and 1998.
Petitioners deducted personal expenses of $27,636 and
$4,476, respectively, as business expenses on their 1998 and 1999
tax returns.
1. 1995
Petitioner did not tell Lewellen that petitioner or his
children had received cash and an interest in two parcels of real
property through the Anis partnership in 1995. Petitioners did
not report on their initial or amended 1995 return income or loss
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011