- 8 -
Similarly, in 1995, 18 checks issued by Style Setter,
totaling $212,388.40, were deposited into Mr. Kong’s personal
checking account at Mellon Bank. One of these checks issued by
Style Setters was payable to “Sam Kong Inc.”
In 1994, Mr. Wen endorsed several of the checks that Style
Setter issued payable to either Sam Kong or Sam Kong Fashions.
Mr. Wen deposited seven checks, totaling $100,329.95, into an
account maintained at Corestates Bank. Mr. Kong and Mr. Wen had
access to this account.
During the taxable years 1994 and 1995, the accounting firm
of Kim Y. Ling, P.C., provided services to Sam Kong Fashions and
Mr. Kong. Kim Y. Ling, P.C., prepared Sam Kong Fashions’s 1994
and 1995 tax returns. Kim Y. Ling, P.C., also prepared Sam Kong
Fashions’s payroll checks, quarterly employer tax returns, and
Forms W-2, Wage and Tax Statement. Kim Ling advised Mr. Kong to
report all income and to deposit all gross receipts into the
corporation’s bank account. Mr. Kong did not inform Mr. Ling
that corporate checks had been either cashed or deposited into
noncorporate bank accounts until after respondent began his
investigation of Mr. Kong and Sam Kong Fashions.
During the taxable years 1994 and 1995, Sam Kong Fashions
reported gross receipts and deductions on its Forms 1120, U.S.
Corporation Income Tax Return, as follows:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011