Rainbow Tax Service, Inc. - Page 3

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          bookkeeping services, and eventually petitioner opened two                  
          additional offices in the Las Vegas area.                                   
               After Rodgers’ death in 2002, Rodgers’ wife, Donna Joyner-             
          Rodgers (Joyner-Rodgers), succeeded Rodgers as petitioner’s                 
          president and assumed management of petitioner and of                       
          petitioner’s three offices.  Also, after Rodgers’ death                     
          petitioner’s stock was owned by Rodgers’ estate, and then in                
          2004, petitioner’s stock was transferred from Rodgers’ estate to            
          Joyner-Rodgers.                                                             
               In addition to her administrative and managerial                       
          responsibilities relating to petitioner, Joyner-Rodgers, as an              
          employee of petitioner, also provides to petitioner’s clients tax           
          return preparation services.                                                
               During the years in issue, petitioner’s tax return                     
          preparation services generally consisted of the preparation of              
          clients’ Federal and State individual, corporate, partnership,              
          gift, and estate tax returns.  Petitioner’s bookkeeping services            
          generally consisted of the preparation, from client records, of             
          profit and loss statements and various other reports and forms              
          relating to client Federal payroll taxes, State unemployment                
          taxes, and sales taxes.                                                     
               Petitioner is not a public accounting firm, and petitioner’s           
          employees do not perform services that require petitioner’s                 
          employees to obtain Certified Public Accountant (C.P.A.)                    






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Last modified: May 25, 2011