All returns are reviewed by firm's principal Alan Young. After he has reviewed them, the firm efiles the returns.
If Bernard owed mony on his returns, he was advised either by witness or her boss Young.
Talking about tax years we looked at 2004, 2005 and 2007. Shea says you did not ask Mr. Kilpatrick about money not accounted for. No says Jones.
Shea says cash being deposited into personal accounts doesn't equate to income necessarily. Right says witness.
So that doesn't mean it was being kept from you. Right says witness.
Were you aware about an inheritance for Bernard in 2004. No says witness.
Inheritance money would not have been taxable it seems.
Shea says in 2005 you did not request any personal bank information from Mr. Kilpatrick. Correct says the witness.
In 2002, Bernard rolled over a retirement account.
10:20AM Shea says in addition to returns, the CPA also provided clients with financial ledgers and IRS documents to accompany the tax returns.
Now in 2007, witness had been doing Bernard's taxes for 7 or 8 years. Jones was filing extensions on his taxes this year. Witness recalls that there was a lot of controversy going on in 2008 with Kwame and that was why she was having a hard time getting information from Bernard.
In the years prior to 2008, did Bernard not ultimately get the information to you in a timely fashion. Yes says witness.
Shea says that in 2008 Bernard explained he simply hadn't had time to get her what she needed. Witness says at some point a conversation was had that Bernard had to file something.
Witness can't remember whose idea it was to file an estimated return but it was not Bernard.
Witness thought that an amended return would be filed at a later point once the documentation came in.
Shea says so the ultimate failure to file an amended return was not anticipated by anybody. Correct says witness.
In order to electronically file, the client is supposed to sign a document. Shea says there is no such signed document for Bernard for 2004. Witness says she does not know.
In 2007 returns, witness agrees Bernard never signed anything in her presence to file the returns.
Shea says if there are any signed client documents for efiles, there should be a copy somewhere. Yes says witness.
Penalty for late tax filing is 25% says witness.
Shea says that in some years the 1120 never got filed, were you aware of that? No says the witness.
But it's normal that some things fall through the cracks when filing returns. Witness agrees.
10:33AM Shea has nothing further. Judge Edmunds calls for a 20 minute break.
10:56AM Quiet day at the snackshop. Not much to report except that defense lawyer Alex Brennan paid for Kwame and Bernard's snacks.
Will be continuing with the engrossing testimony of CPA Cassandra Jones. It has been an extremely slow morning thus far.