- 4 -
preparing accounts payable for Lenders Choice Network. In 2002,
she had 2 or 3 years experience. Mrs. Runels is aware that
businesses and individuals keep books and records and receipts.
Petitioners’ Federal income tax returns for 2002, 2003, and
2004 were chosen for examination. Tax Compliance Officer (TCO)
Carolyn Price sent the initial contact letter to petitioners.
The TCO was subsequently contacted by petitioners’ return
preparer, who held a power of attorney (POA) for 2002.
Eventually, the return preparer attended a meeting with the TCO
but provided “a very minimal amount of records.” Ultimately, the
TCO obtained most of petitioners’ bank statements and prepared a
bank deposits analysis to verify petitioners’ income. The
results of the bank deposits analysis caused the TCO to make an
adjustment to petitioners’ gross receipts for 2002. The TCO had
contact only with petitioners’ return preparer for 2002, and not
with petitioners.
Petitioners failed to respond to requests from the TCO for
information for 2003 during the initial examination.
Petitioners’ return preparer appeared before the TCO, without a
POA, to provide some documentation for 2004. After the TCO
prepared the audit report for 2004, petitioners requested and
received audit reconsideration for the year. Petitioners
disagreed with the amounts allowed for depreciation and vehicle
expenses. The TCO prepared a “corrected report”, lowering the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008