- 23 -
return. Lewellen signed it on November 10 or 11, 1998.4
Petitioners did not correct their reporting of the $672 ordinary
loss on their 1998 amended return.
Petitioners’ signatures on their amended 1998 return are
dated November 8, 1999. Petitioners’ amended 1998 return was
stamped received by the Fresno Service Center on November 22,
1999.
3. 1999
Petitioners reported gross receipts of $606,753 from
petitioner’s law practice on their 1999 return. Petitioners did
not report any income from the Anis partnership on their 1999
return. The IRS received petitioners’ 1999 return on September
21, 2000.
E. Audit of Petitioners’ Returns
During the audit, petitioner told the revenue agent, K.C.
Peredo (Peredo), that payments to contractor Bill Thomas (Thomas)
were for building a cabinet for the computer in petitioner’s
office. However, petitioner paid Thomas with business checks for
remodeling the kitchen of his cabin in Big Bear.
During the audit, petitioner denied that he had improperly
deducted personal expenses as business expenses. For example, he
said he paid Kim Sterling for flowers used solely for his office
4 Petitioner did not allege in the complaint in the lawsuit
he filed against Lewellen that Lewellen had failed to include
client fees of $135,422 in petitioners’ original 1998 return.
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011