- 3 -
Petitioners’ tax returns for the years in issue were
prepared by Wayne Greenfield (Greenfield), an enrolled agent in
Chico, California. Petitioners provided Greenfield with
schedules of gross receipts, cost of goods sold, and other
expenses for 1998, 1999, and 2000 to aid him in the preparation
of their tax returns for those years. Petitioner Cindy I. Fuller
(Mrs. Fuller) maintained the books and records for both of
petitioners’ businesses. She prepared the figures to be entered
on petitioners’ tax returns and provided them to Greenfield.
Other than contracts for the purchase of equipment, Mrs. Fuller
did not provide to Greenfield any underlying documents to
substantiate how petitioners determined the figures that they
submitted to him to be entered on their tax returns.
Petitioners filed their 1998 Federal income tax return on
October 19, 1999. They filed their 1999 tax return on
December 17, 2000. They filed their 2000 tax return on June 7,
2002, after receiving from the IRS a letter requesting that it be
filed.
On their Schedules C, Profit or Loss From Business,
petitioners understated their gross receipts by $73,624 for 1998,
$26,038 for 1999, and $9,931 for 2000. They overstated their
costs of goods sold for materials and supplies by $27,768 for
1998, $49,019 for 1999, and $113,402 for 2000. They overstated
their depreciation expenses by $17,558 for 1998, $26,037 for
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011