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payments of approximately $10,000 in 1994 and $10,000 in 1995.
Wan Zi Chen, another employee of Sam Kong Fashions, was paid
approximately $600 per week, receiving $440 per week in cash and
$160 per week by check.
Siew Khim Soon, a C.P.A. and employee of Kim Y. Ling, P.C.,
prepared the 1994 and 1995 corporate income tax returns for Sam
Kong Fashions, and the 1994 and 1995 joint income tax returns for
Mr. Kong and Run Yuan Chen. All the information reported on the
corporate and individual income tax returns was based upon
information provided to Ms. Soon by Mr. Kong. Ms. Soon asked Mr.
Kong whether he had provided all the information necessary to
prepare the income tax returns; Mr. Kong indicated that he had
faxed all the documents to Kim Y. Ling, P.C. Mr. Kong never told
Ms. Soon that some corporate receipts were not deposited in the
corporate bank account. Mr. Kong also never told Ms. Soon that
he or the corporation incurred expenses in addition to those
contained in the information that he provided to her.
During the taxable years 1994 and 1995, Mr. Kong and Run
Yuan Chen reported gross income and deductions on their Federal
income tax returns as follows:
Reported 1994 1995
Income:
Wages $14,520 $23,650
Deductions:
State and Local
Income Taxes -- 1,864
Real Estate Taxes -- 2,003
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Last modified: May 25, 2011