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Mechanical billed its expenses to T.J. Construction at the
direction of George Kosinski.
Preparation of Petitioners’ Federal Tax Returns
Susan Pereira (Pereira), an employee of Plotnik &
Associates, was the certified public accountant (C.P.A.) who did
the accounting for T.J. Construction and for petitioner’s dental
practice from 1991 through 1999. She also prepared the Forms
1040, U.S. Individual Income Tax Return, for petitioners and the
Forms 1120S for T.J. Construction during that period. The
returns prepared by Pereira were signed by Steven J. Plotnik,
also a C.P.A.
For purposes of preparing the Forms 1040, petitioner
generally provided Pereira with Forms W-2, yearend bank
statements indicating any interest or dividend accounts, and
copies of some relevant canceled checks and bills. For purposes
of preparing the Forms 1120S for T.J. Construction, petitioner
generally provided Pereira with bank statements, check stubs,
check stubs received from Thyssen Steel, and green sheets, which
were petitioner’s handwritten ledgers recording gross receipts
and expenditures from T.J. Construction’s account. Pereira did
not use the green sheets provided unless she had a question about
something in her review of the bank statements and check
registers during the course of her compilation and preparation of
petitioners’ and T.J. Construction’s tax returns.
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Last modified: November 10, 2007