Raymond L. Monk, Jr. - Page 12




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               In addition, neither Monk nor Maney understood the                     
          significance of Monk’s submission of the Dome Book to his                   
          accountant and his reporting the business on his tax return.  We            
          believe them to be sincere, if completely mistaken, when they say           
          they didn’t think it mattered where the money was reported as               
          long as it was reported somewhere.  Although both have long                 
          practical experience as businessmen, neither has the formal                 
          education to understand the complexities of the Code--Monk has no           
          training past high school and Maney left school after the fifth             
          grade.  And that’s why Monk had a professional accountant, Hahn,            
          take care of his somewhat complicated tax return each year.                 
               Unfortunately, Hahn misunderstood Monk’s involvement with              
          Chuck’s Place.  When Monk said that he bought a bar, he meant he            
          had bought the building, but Hahn reasonably thought Monk meant             
          that he was running the bar himself.  When the audit began, Hahn            
          looked more closely into Monk’s involvement--or, rather, lack of            
          involvement--in Chuck’s Place and saw the mistake immediately.              
          It was this epiphany--not the expected tax consequences of the              
          audit--that moved Hahn to amend Monk’s tax returns for the                  
          previous three years and change the way Chuck’s Place was                   
          reported on his later tax returns.  In other words, we find the             
          inclusion of Chuck’s Place on Monk’s Schedule C was a mistake               
          rather than an admission--a mistake that was corrected as soon as           
          it was discovered.                                                          







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