Shea says witness knew Bernard when he was married to Betty Kilpatrick. Witness agrees that he did both their tax returns.
Shea says that at the beginning of the early calendar year, there is an organizer sent by the CPA firm to remind clients about tax returns. Witness agrees that Bernard was not one to return the organizer and was pretty hands off when it came to his returns.
Shea saying you probably only had one conversation about keeping personal and business stuff separate. Correct says witness.
Shea says you are relying on them to take your advice and it's not your place to babysit. "I agree," says Young.
Shea says clients have different levels of engagement in tax process. True says witness.
Some are more accepting of conclusions you draw for them and Mr. Kilpatrick is in that category. Correct says Young.
Witness says he didn't ask for personal bank information. Assumed Bernard would keep that separate.
Witness says as a matter of practice does not ask clients if they have kept things separate.
Shea says $123,000 cash could reflect what went into Bernard's personal bank account. Witness agrees that the money goes into the personal account does not reflect necessarily unreported income. It could be a transfer or a loan would not be unreported income.
Same thing with inheritance says Shea. Witness agrees that is not unreported income and would not have further tax implications.
Bernard's date of birth is March 17th 1941 according to Bernard and thus was of retirement age, 62, in 2004. So says Shea, he could have rolled over retirement funds. Young agrees.
Shea says there was probably no meeting about rolling retirement benefits into business. Witness says no he did not.
Shea says that sometimes there is not adequate between client and firm about material needed for taxes. Witness agrees that happens.
Shea going over how in 2008 Bernard was exceptionally late with filing documents because everything that was going on with Kwame at the time. Witness says he did not have direct conversation with Bernard on the subject. Internally, the firm filed based on 2006 numbers after phone conversations between Bernard and Cassandra Jones. Jones and Young believed that there would be an amended return. Witness agrees that to the best of his knowledge it was Bernard's intention to file an amended return as well.
11:44AM Witness says he can't know for sure that they got a signature from Bernard to file the 2004 returns. Witness says there may be an exception.
Shea says that the witness was asked by an IRS agent in 2006 for authorized 2004 form so if he couldn't produce it, it wasn't because the 3 years were up.
Shea says IRS agent asked for every scrap of paper available on Bernard. Witness believes so yes.
11:50AM Looking at fax cover sheet addressed to IRS on February 20th 2007 from Cassandra Jones. the second page is an IRS efiling authorization. Juror asks to blow up the document on the overhead. Shows a signature line to authorize efiling but no signature is on the line.
Shea says this is submitted per IRS request within 1 and 1/2 yrs. of filing but the 2004 form has no signature on it signaling that Bernard did not give official signatory authorization. Witness says his firm does not have any authorized signed document for 2007 returns either. So Shea says for both 2004 and 2007, the firm has no signed documents by Bernard for authorizing tax returns under penalty of perjury.
11:56AM Blackwell redirects. Asks about depositing of income into accounts and asks if witness wouldn't have wanted to know about it. Witness says he would have. Blackwell says disbursement of $180,000 would have been personal income to Bernard. Witness agrees.
Witness also says he would not have filed 2004 and 2007 tax returns without Bernard's approval. Says that is standard business practice.
Witness steps down and we are taking a 5 minute break.
12:12PM Court back in session. And the government recalls agent Rowena Schuch.
Discussing Bernard's tax returns in 2004, 2005 and 2007. Schuch went over bank records, tax returns and subpoenas of third parties.
Looked at deposits into bank accounts. Both personal and business in order to get full financial profile.