Legal Question in Tax Law in California

IRS/Taxes
My question:I have an adversary case against a debtor in Bankruptcy court. He has listed his income for 2004, 2005 and 2006 as around $100K. I just found out that he was 1099'd for these years and the difference varies from $100k to $200K. Big difference! He has a corporation with just him as the president and maybe his wife as asecretary. The IRS confirms this yet this company has NEVER filed a corporate return. And has never filed any 1099's on it's behalf. The strange thing is that for '03, '04, '05 and '06 he has deposited for his quarterly taxes $$$ sometimes w/a 941 but most w/o. For the 1st and 2nd quater of 2005 he filed a 941 with a zero bal. The other quaters he didn't file a 941 but has made various electronic transfers which total $54K.
So he has 1099 from his employing real estate broker that shows $380K but his return show he grossed $137K and Adjusted gross is $135K.
He has a corporation that has NEVER filed a return and he has 50K in deposits.
Is this a tricky way to hide money? If he files a return for the Corp. and turns out he deposited too much for his quaterlies would he be given back the difference. In other words for 2qtr '03 he deposted $10K. He files a retrun and he owes $3K..would he get back 7K?

Asked on 11/12/07, 9:03 pm

Donald Field Donald L. Field, Jr., Attorney at Law

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Re: IRS/Taxes

these questions should be directed to the attorney who represents you in the adversary proceeding.

Answered on 11/14/07, 5:53 pm

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