David Bruce Billings - Page 4

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          jointly held, David and Rosalee each kept almost exclusive                  
          control over one of them.  In 1999, Rosalee began to transfer               
          money from the Electric Company’s payroll account into the                  
          checking account that she controlled and into which she had her             
          own pay directly deposited.                                                 
               Rosalee kept her embezzlement secret from her husband and              
          she did not report on their 1999 return the nearly $40,000 that             
          she had stolen.  The Electric Company discovered the embezzlement           
          in December 2000, fired her, and then notified the authorities.             
          She told her husband what she had done and hired a lawyer,                  
          Patrick Wiesner.  (Wiesner also represented David in this case              
          and before the IRS.)                                                        
          In his capacity as Rosalee’s lawyer, Wiesner advised her to                 
          report the embezzlement income to the IRS on an amended return.             
          He told her that if she did, a sentencing judge would probably be           
          more lenient and might even depart from the U.S. Sentencing                 
          Guidelines.  But section 1.6013-1(a)(1) of the income tax                   
          regulations created a problem.  It prohibits spouses who have               
          already filed a joint return for a particular year from filing              
          amended returns changing their status to married-filing-                    
          separately once the deadline to file returns has passed.  The due           
          date for the Billingses’ 1999 tax year--April 15, 2000--was long            
          past, and so Wiesner told David (whether in Wiesner’s capacity as           
          Rosalee’s lawyer or as David’s is unclear) that David also had to           

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