Bennett Geiger - Page 4

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          substantiate $149,641 of theft loss for taxable year 2000 and,              
          accordingly, allowed a theft loss of $5,586.  Additionally,                 
          respondent determined that petitioner was liable for an accuracy-           
          related penalty pursuant to section 6662.                                   
               Petitioner cannot identify specific checks whose amounts add           
          up to the $704,500 allegedly embezzled from BBTS.  Additionally,            
          petitioner cannot identify checks whose amounts add up to the               
          $1,096,713 originally claimed as part of the embezzlement, which            
          was later identified as previously deducted business expenses.              
          Petitioner did list, in an exhibit attached to petitioner’s                 
          answers to respondent’s interrogatories, checks totaling                    
          $1,232,602.69 as allegedly embezzled.                                       
               Petitioner provided respondent with copies of some, but not            
          all, of the listed checks.  Petitioner did not provide source               
          documents to the examining agent during the course of the audit.            
          Petitioner did not maintain the source documents underlying the             
          general ledgers of BBTS.                                                    
               At trial, petitioner further reduced the claimed theft loss            
          by $139,789 to $564,711.  Petitioner also conceded that all                 
          checks in the amount of $1,500 were not embezzled, but did not              
          further change the total amount of theft claimed.                           
               Leslie Clark (Ms. Clark) and Ann Ellis (Ms. Ellis) are two             
          former employees of BBTS who petitioner alleges embezzled funds             
          from BBTS.  Ms. Clark worked for BBTS while married to petitioner           

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Last modified: May 25, 2011