TAX COURT OPINION

Case: Osvaldo Britez
Docket Number: 8335-13
Judge: Gustafson
Opinion Type: bench
Filed: 04/29/2014
Pages: 26

UNITED STATES TAX COURT WASHINGTON, DC 20217 CMS OSVALDO BRITEZ, Petitioner, v. ) ) ) ) Docket No. 8335-13. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ) ORD ER Pursuant to the opinion of the Court as set forth in the pages of the transcript of the proceedings before Judge David Gustafson at Washington, D.C., on April 18, 2014, containing his oral findings of fact and opinion, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial in the above case before Judge Gustafson at Washington, D.C., containing his oral findings of fact and opinion rendered at the trial session at which the case was heard. In accordance with the oral findings of fact and opinion, decision will be entered under Rule 155. (Signed) David Gustafson Judge Dated: Washington, D.C. April 29, 2014 SERVED Apr 30 2014 Capital Reporting Company 3 1 Bench Opinion by Judge David Gustafson 2 April 1 , 2014 3 Osvaldo Britez v. Commissioner 4 5 6 7 8 9 10 11 12 13 14 15 16 Docket No. 8335-13 THE COURT: The Court has decided to render the following as its oral Findings of Fact and Opinion in this case. This Bençh Opinion is made pursuant to the authority granted by section 7459(b) of the Internal Revenue Code, and Tax Court Rule 152; and it shall not be relied on as precedent in any other case. By a notice of deficiency dated January 17, 2013 (Ex. 1-J), respondent determined a deficiency in the Federal income tax of petitioner Osvaldo Britez for the year 2009, plus an accuracy-related penalty under section 6662(a). The issues to be decided are: . 17 whether petitioner received income that he failed to 18 19 20 21 22 23 24 25 report (we hold that he did); if so, whether he is entitled to deductions from that income (we hold that he is); and whether he is liable for the penalty (we hold that he is). Trial of this case was conducted on April 17, 2014, in Washington, D.C. Petitioner represented himself, and respondent was represented by Adam Sweet. 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 4 1 2 3 4 5 FINDINGS OF FACT Bank accounts Mr. Osvaldo Britez had two Citibank accounts: One was a personal checking account (ending -8611) over which he had joint control with his brother 6 Carlos, who lived in Paraguay. (Stip. 9.) The other 7 (ending -2 20) was in the name "Osvaldo Britez DBA 8 Britez Brother's" ("the DBA account"). (Stip. 11.) 9 Mr. Britez's car activity 10 11 12 13 14 During 2009 Osv ldo conducted with Carlos a business activity th t consisted of purchasing cars and car parts in the U.S. and shipping them to Paraguay. To conduct this activity, the brothers used a Citibank account that was in the name "Osvaldo 15 Britez DBA Britez Brother's". We find that in 16 performing this activity, Osvaldo was not a mere 17 18 19 20 "bridge" (as he put it) or facilitator for his brother but was himself a principal in this activity. Carlos used the Internet to identify cars to be purchased, negotiated the prices, and instructed 21 Osvaldo to make the purchases. Osvaldo did so, often 22 with cash, and hired a shipper to load the car into a 23 24 25 container in the Port of Baltimore, from which it was shipped. When parts were needed, Osvaldo purchased them and placed them inside the car before it was 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 5 1 2 3 4 5 shipped. (Occasionally, a non-car item such as a telephone or guitar was purchased for shipment to Paraguay and was placed inside a car.) To finance this activity, Carlos sent wire transfers totaling $ö84,900 to the DBA account. 6 Osvaldo made expenditures totaling $549,799 that 7 8 9 10 11 12 13 14 15 16 17 18 19 20 related to the car activity. The excess of the wire transfers over these expenditures was $35,101. (See "accepted" and "not accepted" amounts from Ex. 10-R, excluding a $5,200 purchase in 2010.) On two occasions a shipped item was lost or damaged, and an insurance company issued a check to reimburse the loss. Osvaldo made deposits of such checks on March 16 ($190.20) and October 14 ($294.34). Osvaldo had to replace the transmission in a car that was to be shipped to Paraguay. He was nonetheless able to sell the old transmission for $425 and deposited the proceeds on December 14. On November 24, $2,700 was deposited into 21 Osvaldo's account foi the sale of a vehicle he owned 22 23 24 25 in Paraguay. Our record includes no evidence about the cost he incurred to acquire this vehicle. We hold that the foregoing amounts were taxable income to Osvaldo. Redeposited amounts, however, are 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 6 1 2 3 4 5 6 not. Because Osvaldo often had to use cash to purchase cars, he sometimes found himself with excess cash on hand that he preferred to re-deposit. Such re-deposits occurred on March 9 ($250), July 2 ($1,000), September 2 ($880), October 7 ($2,000), and December 8 ($300). 7 Mr. Britez's painting activity 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In 2009 Mr. Britez also engaged in the business of painting exteriors and interiors of houses. On his tax return he reported some of the income from this business, but he evidently did not report the following amounts that also are taxable income from that business: On two occasions, Mr. Britez deposited amounts that he had received;from customers, whióh he characterized as "tips" or "gifts" and did not treat as taxable income: January 27 ($155) and April 15 ($145). On December 16, 2009, Mr. Britez's aunt paid him $1,650 for a job thaé he did not perform until 2010. He treated this amoudt as an "advance" and did not report it as 2009 income. However, as an individual he is a cash-basis taxpayer, and our record includes no evidence that he held this amount in trust. In several instances Mr. Britez's painting jobs 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 7 were part of a renovation in which the owner intended to replace -- and was willing to give to Mr. Britez -- a functioning household appliance that was Ab)© preferenee to Osvaldò's own existing appliance. In T L those cases, Mr. Britez took the preferable appliance, installed it at his house, and sold his old appliance and deposited the proceeds -- his dishwasher for $120 ånd on May 22, his refrigerator for $355 on June 12, and his washer and dryer on September 14 for $250. (Theoretically Mr. Britez realized income not úpon sale of his old appliance in the amount of its sale price but upon receipt of the "new" one in the amodnt of its value, which might be higher; but the IRS did not raise this point, so in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mr. Britez's favor we take the sale price as the 16 relevant number.) 17 18 19 Mr. Britez occasionally sold assets that he had acquired and used in his painting business and then deposited the proceecs -- on March 5, $220 for a nail 20 gun; and on May 29, $880 for a power washer. 21 Other nontaxable financial activity 22 23 24 25 Mr. Britez occasionally sold items that he had bought and used personally and not for his business, and deposited the proceeds: on March 3, $350 for a television; on April 7, $740 from a yard sale; on 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 1 2 3 May 6, $420 for a playground set; on May 19, $1,760 for an industrial laún mower (acquired from a friend as repayment of a prior loan by Mr. Britez); on 4 October 13, $230 for a chain saw; and on December 16, 5 6 7 8 9 10 11 12 13 14 15 16 $820 for a hot tub. These assets were sold used and were therefore surely sold for less than their purchase prices; and because they are personal, their cost basis could notihave been reduced by depreciation. Mr. Britez deposited gifts of $450 on January 5 from his mother and óf $1,500 on October 13 from his aunt. On occasion Mr. Britez helped a friend who wanted to send money to someone else in Paraguay. He deposited the friend's cash into the joint personal checking account and told his brother Carlos to 17 withdraw the money from a Citibank ATM in Paraguay 18 19 20 21 22 23 and give the cash to the intended recipient. Such deposits were made or February 17 ($350) and December 23 ($190). On occasion Mr. Britez borrowed money from friends and deposited it into one of his accounts. This occurred on February 3 ($400 from Lisa Avalos), 24 March 23 ($500 from his girlfriend Roxanna), March 31 25 ($1,200 from Roxanna), May 11 ($1,600 from his 866.488.DEPO www.CapitalReportingCompany.com I Capital Reporting Company 9 1 mother), and September 18 ($1,700 from Francis 2 3 4 5 6 7 8 Cavanaugh). . On March 23 Mr. Britez deposited $280 that consisted of payments friends had made to him to reimburse the cost he had incurred to buy soccer shirts for their team. On June 15 Mr. Britez deposited $425 paid to him for damage to his personal vehicle. 9 Other taxable financial activity 10 11 12 13 14 15 16 17 18 19 20 As for the other deposits made to the accounts, our record lacks sufficient credible evidence to enable us to identifý them as consisting of gifts, deposits for friends, loans from friends, repayments of loans, or other nontaxable amounts. Rather, they are taxable, and they include the following: On August 31 Mr. Britez deposited $2,000 that he received as proceeds of a sale of some of his land in Paraguay. On June 29 Mr..Britez deposited $340 that someone paid to use Osvaldo's shed for storage for 3 21 months. 22 23 24 25 On January 26 Mr. Britez sold for $400 an antique picture that he had received as a gift from his grandmother. The record does not show the cost (if any) that his grandmother incurred to acquire 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 10 1 this picture. 2 Record-keeping 3 4 5 6 Mr. Britez did not keep orderly books and records for the car ctivity, for his painting business, or for his personal finances. He did keep . copies of many receipts and invoices, but he did not 7 maintain any ledger. His only means to learn the 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 total amounts of his expenditures (or categories of them) was to manually add up amounts from piles of receipts. (Ex. 15-P) . Tax returns and audi Mr. Britez file a Federal income tax return for the year 2009. (Ex. 2-J. ) To that return he attached a Schedule C for "Painter services" but did i not report anything with respect to the car activity. The IRS commenced an lexamination of his return. The IRS obtained monthly statements for Mr. Britez's accounts, performed an analysis of the deposits that were made into those accounts for the years at issue, and determined that the wire transfers from Paraguay and many of the other deposits were taxable income that Mr. Britez had not reported. (Ex. 5-R.) On January 17, 2013, the IRS issued its notice of deficiency. 25 Court proceedings 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 11 1 Mr. Britez timely filed his petition on 2 April 15, 2013. At that time he resided in Virginia. 3 4 5 6 (Stip. 1.) Before trial Mr. Britez presented to the IRS documents showing expenditures he had made in the car activity. The IRS accepted some but disputed others and set out their position on Exhibit 10-R. 7 Mr. Britez annotated'a copy of the IRS's bank deposit 8 9 10 11 12 13 14 15 16 17 analysis to show his disagreements with it and offered it as Exhibits 11-P and 12-P. OPINION The IRS's determination is presumed correct, and the taxpayer bears the burden to prove any adjustment to the income the IRS determined and to prove his 1 entitlement to any deductions he claims. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). I. Car activity We hold that Mr. Britez was a principal, and not 18 merely an agent, of the car activity. He was the 19 20 21 22 23 24 25 owner of the bank account used by the activity, and from that account he paid his personal expenses. He thus used the account as his personal fund. Although he alleged generally ,that he paid back into the account all the amounts that he had "borrowed" from it, he did not show such repayments, and he kept no records that would have enabled him to keep track of 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 12 1 2 3 what he owed. It is, true that someone might perform tasks for a family mémber as a favor and not for payment; but Mr. Britez's own involvement in the car 4 activity was so substantial and so sustained that it 5 6 7 8 9 10 11 12 13 14 15 16 17 is far more likely that his work is explained by his expectation of compensation -- which he evidently received from his use of the account. Since the gross income of the car activity is undisputed -- 1.e., I the wire transfers from Paraguay totaling $584,900 -- it was incumbent on Mr. Britez to show expenditures that might be deducted from that gross income, and to a great extent he did so. We found that he made expenditures totaling $549,799, leaving a net profit of $35,101. The IRS would disallow about $150,000 more of those expenses as insufficiently substantiated (either as to the fact of the payments or as to their relation to the car 18 activity); but we hold that Mr. Britez's documents in 19 20 21 22 23 conjunction with his testimony persuade us and do carry his burden of proof. To that net profit can be added several items from the bank deposit analysis (discussed below) that we found to be taxab e proceeds related to the car 24 activity -- i.e., (1) insurance company 25 reimbursements on March 16 ($190.20) and October 14 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 13 1 2 3 4 5 6 7 8 ($294.34); (2) proceeds from the sale of an old transmission ($425) deposited on December 14; and (3) proceeds of $2,700 from the sale of a vehicle in Paraguay on November 24. (If they are characterized as car activity income, then of course they should not be double-counted below.) II. Bank deposit income The taxpayer bears the responsibility to 9 maintain books and records that are sufficient to 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 establish his income. See sec. 6001; 26 C.F.R. sec. 1.446-1(a)(4). Mr. Britez did not do so. When a taxpayer fails to keep adequate books and records, the Commissioner is authorized by section 446 to determine the existehce and amount of the taxpayer's income by any methodi that clearly reflects income. See Holland v. United States, 348 U.S. 121, 130-132 (1954). A bank deposit is prima facie evidence of income, and a bank deposits analysis is a method of income reconstruction that this Court has long accepted. Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). When a taxpayer keeps inadequate or incomplete books or records and has large bank deposits, the IRS is not acting arbitrarily or capriciously by resorting to the bank deposits 25 method. See DiLeo v. Commissioner, 96 T.C. 858, 867- 866.488.DEPO www.CapitalReportingCompany.com | Capital Reporting Company 14 1 2 3 4 5 6 7 8 9 10 11 12 13 868 (1991) aff'd, 959 F.2d 16 (2d Cir. 1992). The bank deposits method of reconstruction assumes that all of the money deposited into a taxpayer's account is taxable income unless the taxpayer can show that the deposits are not taxable. The IRS need not show a likely source of the income when using the bank deposits method, but the IRS must take into account any nontaxable items or deductible expenses of which the IRS has knowledge. See Price v. United States, 335 F.2d 671, 677 (5th Cir. 1964). At trial Mr. Britez claimed that certain deposits were nontaxable amounts. He summarized his contentions on Exhibits 11-P and 12-P, which are his 14 mark-ups of the IRS's bank deposit analysis, with his 15 16 17 18 19 20 21 22 23 24 25 annotations that he elaborated on at trial. To the extent explained above in the findings, we accept his explanations and hold those amounts to be nontaxable. To facilitate the pa ties' understanding of this opinion and their recomputation under Rule 155, we have made our own annotation of Mr. Britez's mark-up and will attach it tò the transcript of this opinion as Exhibit 16-C. Amounts that the IRS originally put in the "Schedule C" column that we hold to be nontaxable are stricken in that column, and in the right margin beside them we have added the notation 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 "Nontaxable". Our holding that the other amounts are taxable is the result either.of evidence that an amount has an explicitly taxable character or of Mr. Britez's failure to provide adequate evidence to persuade us that it is more likely than not that a given amount came from a nontaxable source. For example, where his testimony is the only support for the contention that an amount is a loan from an unidentified lender, we are not persuaded- or where roughly contemporaneous deposits into the two different accounts (i.e., in early October) are supposedly explained by the same data, we conclude that the explanation can suffice for only one account, and leave the other unexplained and therefore taxable.. Apart from wire transfers from Paraguay, the IRS's bank deposit analysis showed total unexplained deposits of $133,952 When compared to the gross receipts of $106,190 that Mr. Britez reported on Schedule C, this suggests unreported taxable income of the difference of $27,762. However, the disputed amounts that we find nontaxable in Mr. Britez's favor total $17,175, leaving the actual amount of unreported taxable ddposits as $10,587. III. Accuracy-related penalty 866.488.DEPO www.Capita1ReportingCompany.com Capital Reporting Company 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Section 6662 imposes an "accuracy-related penalty" of 20 percept of the portion of the underpayment of tax that is attributable to the taxpayer's negligence or disregard of rules or regulations or that is attributable to any substantial understatement of income tax. Negligence includes "any failuré by the taxpayer to keep adequate books and records". 26 C.F.R. sec. 1.6662- 3(b)(1). That failure by Mr. Britez, especially in conjunction with his wholesale failure to report his income and expenses from the car activity, constituted negligence. Moreover, although the deficiency must now be recalculated under Rule 155, it does appear (and can be confirmed or corrécted in that recalculation) that the 2009 understatemént will be "substantial" under section 6662(d) -- i.e., it will exceed both $5,000 and 10 percent of the tax that should have been reported. Consequently, the penalty would apparently be applicable even in the absence of negligence. Mr. Britez cannot successfully invoke any of the defenses that a taxpdyer might assert against an accuracy-related penalty: He had no "substantial authority" for his pósition (see sec. 6662(d)(2)(B)); he did not disclose on his return (see sec. 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 17 6662(d)(2)(B)) the unreported income that gives rise to the liability; and he did not show reasonable cause and good faithI for his erroneous reporting (see sec. 6664(c)(1)). So that the liability can be recalculated, decision will be entered pursuant to Rule 155. This concludes the Court's oral Findings of Fact and Opinion in this case. (Whereupon, at 2:18 p.m., the above- entitled matter was concluded.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 866.488.DEPO www.CapitalReportingCompany.com CITIBANK ACCOUNT M8611 2009 PERSONAL CHECKING OSVALDOBRIETEZ AND CARLOS P BRITEZ M )4/13/09 Deposit Date 03/16/09 03/18/09 03/23/09 03/23/09 03/23/09 03/31/09 04/06/09 Deposits Description 190.20 Unknown 3,468.72 Reverse Debit 3,468.72 Reverse Debit 1,000.00 Transfer 2,500.00 Unknown 1,200.00 Cash ià 4 p 60.00 Michael Nordfelt Total: 11,887.64 Transfers from Wire Refund Other Sch. C 190.20 Business M Transfers Nontaxable Total Comments 3,468.72 3,468.72 . 1,000.00 2,500.00 / Mie9999 60.00 3,950.20 1,000.00 0.00 6,937.44 60.00 11,887.64 190.20 $ MO rt r hEC K hiun,( 3,468.72 (cid:16)042 3,468.72 1,000.00 verified 2,500.00 1,200.00 Ko s a gou.,b l o op e NONTAXABLE Deposits Description Sch. C Business Transfers Nontaxable Total Comments Transfers from Wire Refund Other 300.00. 3,500.00 500.00 195.00 3,433.76 4,495.00 0.00 3,433.76 300.00 verified 3,433.76 3,500.00 verified 500.00 verified 210.00 195.00 verified 3,000.00 11,138.76 )S/13/09 Deposit Date 04/15/09 04/15/09 04/20/09 04/22/09 04/23/08 05/04/09 05/13/09 300.00 Transfer 3,433.76 Reverse Debit 3,500.00 Transfer 500.00 Transfer 210.00 Suresh Meduri 195.00 Transfer 3,000.00 Mary Ann Aslund Total: 11,138.76 6/11/09 Deposit Date 05/15/09 05/22/08 05/29/09 Total: Deposits Description 1,850.00 Transfer 120.00 Unknown 880.00 Unknown 2,850.00 210.00 3,000.00 3,210.00 Sch. C Transfers from Wire Refund Other Business Transfers Nontaxable Total Comments (cid:16)042 1,850.00 1,850.00 verified 120.00 880.00 1,000.00 >( 1,850.00 0.00 ' O.00 d £ Mç y oA at ; od 120.00 880.00 2,850.00 CITIBANK ACCOUNT 611 2009 PERSONAL CHECKING OSVALDOBRIETEZ AND CARLOS P BRITEZ M 17/13/09 Deposit Date 06/18/09 06/19/09 06/25/09 06/29/09 Deposits Description 3,433.76 Reverse Debit 3,300.00 Transfer 400.00 Transfer 200.00 Loan Sch. C 07/02/09 07/03/09 07/07/09 Total: 1,000.00 Cash 97.00 Unknown 200.00 Unknown 8,630.76 Mg898MMP y x X 97.00 200.00 1,297.00 0 Transfers from Wire Refund Other Business Transfers Nontaxable Total Comments 3,300.00 400.00 3,433.76 200.00 3,433.76 3,300.00 verified 400.00 verified 200.00 Cking Plus overdraft TP indicates redeposit; however, withdrawal h DRP9 2 - - 1,000.00 3:11pm; deposit is 1:22pm W NONTAXABLE . 97.00 É(cid:16)042r sn p i ed 200.00 TP - From personal 3,700.00 0.00 3,633.76 8,630.76 8/13/09 Deposit Date 7/14/09 Deposit Date 08/18/09 08/18/09 08/18/09 .08/28/09 08/31/09 09/02/09 09/14/09 - Total: Deposits Description Sch. C Business Transfers Nontaxable Total Comments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Transfers from Wire Refund Other Deposits Description 2,900.00 Unknown Hillary Renee Lovick Elise J Linsey 1,000.00 Elise J Linsey 2,000.00 Unknown 880.00 U 2,500.00 Transfer 9,280.00 Transfers from Wire Refund Other Sch. C Business Transfers Nontaxable Total Comments 200.00 X 220.00 .e 2,480.00 / 1,000.00 2,000.00 g .segeWM \ pûU lh { bd.cíL.is2.E£ 200.00 220.00 2,480.00 1,000.00 2,000.00 ;od Mg(cid:16)060Prh+ fo 880.00 $,. * NONTAXABLE 6,780.00 2,500.00 2,500.00 0.00 0.00 9,280.00 W verified CITIBANK ACCOUNT 611 2009 PERSONAL CHECKING OSVALDOBRIETEZ AND CARLOS P BRITEZ M . Transfers from Wire Other Refund Sch. C Business Transfers Nontaxable Total 500.00 165.90 500.00 165.90 Comments 1,647.00 / 1,500.00 65.00 --330A0 -600Mie -8592& 4!G999 294.34 4,916.34 . . >r X X × × . T g; w y d ( h a ch 1 647.00 1,500.00 \ / 65.00 LLC Bath 330.00 500.00 350.00 230.00 ;o 294.34 perTP Ck from insur c a k × cósk LoA boom T o f o# ¶|m foq too g o | sa o L_ _ +-- NONTAXABLE 0.00 0.00 665.90 . 5,582.24 Deposits Description 500.00 BMW Service Refund 165.90 Lowes Refund 3,212.00 Nina Gradia Lauren G Higgins E Street LLc . 330.00 Unknown 500.00 Unknown 350.00 Unknown __230.00. Unknown . 294.34 Unknown 5,582.24 . Deposits Description Sch. C 99.99 Hogan & Sons Refund 300.00 Loan 450.00 Transfer 2.08 Home Depot Refund 27.15 Advance Auto Refund 879.22 Transfers from Wise Business Transfers Nontaxable Total Refund Other 450.00 0.00 0 450.00 0.00 . 99.99 300.00 2.08 27.15 429.22 Comments 99.99 300.00 Cking Plus overdraft 450.00 verified 2.08 27.15 879.22 . 10/14/09 Deposit Date 09/17/09 09/22/09 10/01/09 10/01/09 10/01/09 10/01/09 10/05/09 10/07/09 10/09/09 10/13/09 10/14/09 Total: 11/15/09 Deposit Date 10/27/09 10/27/09 10/28/09 11/10/09 11/13/09 Total: CITIBANK ACCOUNT # 611 2009 PERSONAL CHECKING OSVALDOBRIETEZ AND CARLOS P BRITEZ M Deposits Description 415.00 Andrew C Ellias 2,000.00 Transfer 2,000.00 Transfer 2,000.00 Transfer 1,400.00 Transfer 1,000.00 Lauren G Higgins 19.00 Commonwealth VA 8,834.00 . Sch. C Transfers from Wire Refund Other Business Transfers Nontaxable Total Comments 415.00 y 2,000.00 2,000.00 2,000.00 1,400.00 1,000.00 1,415.00 7,400.00 0.00 19.00 19.00 415.00 2,000.00 verified 2,000.00 verified 2,000.00 verified 1,400.00 verified 1,000.00 19.00 Refunds 8,834.00 . Transfers from Wire Refund Other Deposits Description Sch. C Business Transfers Nontaxable Total Comméñté ~~ ~ 100.00 Loan 300.00 Transfer 190.00 Unknown 790.00 Daniel Benjamin 1,380.00 N V 790.00 980.00 300.00 100.00 300.00 0.00 100.00 100.00 Oking Plus Overdraft 300.00 verified 190.00 \hy kvaig aqpç$ p 790.00 1,380.00 . . +-NONTAXABLE _ . 2/13/09 Deposit Date 11/16/09 11/16/09 11/18/09 11/23/09 11/30/09 12/04/09 12/04/09 Total: 11/14/10 Deposit Date 12/14/09 12/16/09 12/23/09 12/28/09 Total: CITIBANK - ACCOUNT # 920 2009 BUSINESS CHECKING OSVALDO BRITEZ DBA BRITEZ BROTHER'S From Personal Wire Transfers )( Sch. C 5,000.00 400.00 y 155.00 6,005.00 5000 Sch. C =dess00s 0.00 0.00 From )ç Personal Wire Transfers . 400.00 0.00 2,100.00 2,100.00 4,200.00 Deposit Amount Description 450.00 Unknown hoh a r 5,000.00 Ruth Ann Hudson 3,468.72 Reverse Debit 400.00 Cash 181.34 Reverse Debit 155.00 Unknown 50.00 Reverse Debit 9,705.06 Deposit Amount Description 400.00 Unknown i i 3,468.72 Reverse Debit 163.00 Reverse Debit 2,100.00 Carlos P. Britez 3,468.72 Reverse Debit 2,100.00 Carlos P. Britez 11,700.44 Deposit Amount Description 350.00 Unknown 220.00 Unknown 250.00 Unknown 2,600.00 Mary Ostund 500.00 Unknown ga e .480.00 Unknown 1,500.00 Donald Levering Jr. 1,130.00 Donald Levering,Jr. 6,830.00 Sch. C .==íl69!9& 220.00 =a89!90k 2,600.00 WiO9J99 49998 1,500.00 v 1,130.00 6,830.00 From Personal Wire Transfers X )( >( hefunds Retumed Checks 3,468.72 . 181.34 50.00 3,700.06 Refunds Retumed Checks 3,468.72 163.00 3,468.72 7,100.44 hefunds Retumed Checks Total 450.00 Ao Comments e NONTAXABLE 5,000.00 3,468.72 400.00 g,[ 181.34 155.00 50.00 9,705.06 a,(cid:16)040u d ò(cid:16)254Î t? p s Total . 400.00 hp gpg (g Qu e NONTAXABLE Comments 3,468.72 163.00 2,100.00 3,468.72 2,100.00 11,700.44 Total Comments 350.00 soß µq dd Tl/ p) +-NONTAXABLE 220.00 Sp|d q p.g gwr k/a 250.00 cannot venfy redeposit +- NONTAXABLE C a 2,600.00 500.00 h6Yikeak For M +-NONTAXABLE 280.00 µ n is q p to tu qm e- NONTAXABLE y 0.00 . 0.00 1,500.00 1,130.00 6,830.00 0.00 te quc, µo µog p n-09 )eposit Date 01/05/09 01/14/09 01/16/09 01/26/09 01/26/09 01/27/09 01/30/09 Total: b-09 )eposit Date 02/03/09 02/17/09 02/19/09 02/20/09 02/23/09 02/24/09 Total: ir-09 leposit Date 03/03/09 33/05/09 33/09/09 33/16/09 33/23/09 33/23/09 33/25/09 33/31/09 Total: CITIBANK - ACCOUNT 920 2009 BUSINESS CHECKING OSVALDO BRITEZ DBA BRITEZ BROTHER'S Sch. C 4,854.50 v' 120.00 spectP 2,427.25 145.00 3,000.00 3,010.00 1,000.00 v 350.00 2,035.00 v 2,200.00 v 19,881.75 Sch. C 913.94 =N!99t> 4,180.00 From Personal Wire Transfers Refunds Returned Checks 106.05 0.00 0.00 106.05 From Personal Wire Transfers litefunds Returned Checks y ,X 1,000.00 .SiiS9:06 )( 1,430.00 )eposit Date 04/06/09 04/06/09 04/07/09 04/15/09 04/15/09 04/15/09 04/16/09 04/20/09 04/20/09 04/28/09 04/28/09 04/28/09 04/28/09 Total: ay-09 ')eposit Date 05/04/09 05/06/09 05/11/09 05/13/09 05/15/09 05/19/09 05/19/09 05/22/09 05/22/09 05/26/09 05/26/09 05/27/09 05/27/09 Total: Deposit Amount Description 4,854.50 Lauren G Higgins 120.00 Unknown & s y µ,n|fn £ 740.00 Cash . 2,427.25 Lauren G Higgins 145.00 Unknown 106.05 Debit Card Refund 3,000.00 Unknown 3,010.00 Unknown 1,000.00 Jacquelyn Bendall 4,585.00 Lauren G Higgins Kenneth Gradia Elise J Lindsey 19,987.80 Deposit Amount Description 913.94 Unknown 420.00 Unknown (pog, 1,600.00 Unknown gng e 4,180.00 Unknown 1,000.00 Transfer 1,760.00 Unknown d 25.11 Home Depot Refund 1,43Ó.00 Unknown 47.02 Auto Parts Refund 0.17 Paypal 0.05 Paypal 97.23 Auto Parts Refund 35.19 Roff Center Inc.Refund Total 4,854.50 Comments 120.00 cash redep-not verified ('e y so p d c. M 740.00 p d cp i l s,o pe +- NONTAXABLE (p prow c,odoiKfr 2,427.25 145.00 g 106.05 3,000.00 3,010.00 1,000.00 350.00 2,035.00 2,200.00 19,987.80 pre ouK Total Comments 913.94 420.00 µ0ug ep yoved +- NONTAXABLE +- NONTAXABLE 1,600.00 go(cid:16)040¼o- 4,180.00 1,000.00 verified 1,760.00 sod M IuduSTr +-- NONTAXABLE T (Totò (cop' 11,508.71 10,303.94 1,000.00 0.00 . 25.11 47.02 0.17 0.05 97.23 35.19 204.77 25.11 1,430.00 47.02 0.17 Set up account 0.05 Set up account 97.23 35.19 11,508.71 CITIBANK - ACCOUNT # 920 2009 BUSINESS CHECKING OSVALDO BRITEZ DBA BRITEZ BROTHER'S Deposit Amount 1,090.00 Description Sch. C From Pomonal Wim Transfers Refunds Returned Checks Total Comments Lauren G Higgin Elizabeth M Bamett 87.02 Home Depot Refund 1,362.02 Kenneth Gradia 355.00 Unknown . 1,980.00 Howard Jesse Smith 425.00 Unknown 25.04 Monarch Paint Refund 4,635.00 . RudolphUitz,Jr. KennethGradia Mary Ann Oslund 32.65 Home Depot Refund 2,000.00 Carlos P Britez 35.27 Hem Motors refund 2,020.00 Melissa Maxfield Kristen m Armstrong 340.00 Unknown 14,387.00 400.00 - / , 690.00 1,362.02 355.00 1,980.00 as409!81P 1,360.00 3,000.00 275.00 ^ 650.00 1,370.00 340.00 12,207.02 / t/ v .)( 0.00 From 87.02 25.04 . 32.65 35.27 2,000.00 2,000.00 179.98 Refunds Returned . Checks 1,253.00 Deposit Amount 1,253.00 Retum Check Description Sch. C Personal Wire Transfers / / 775.00 Melissa Maxfield 2,000.00 Henrike Frownein 7,535.80 Kenneth Gradia Steven J. Law Dennis M McGrann 2,100.00 Carlos P Britez 1,000.00 Elise J. Linsey 570.00 Duddington Manor Condor 1,930.00 SusanScully David Bear Carrillo David Bear Canillo 17,163.80 775.00 2,000.00 5,855.80 1,100.00 580.00 1,000.00 570.00 1,440.00 340.00 150.00 13,810.80 2,100.00 0.00 2,100.00 1,253.00 400.00 690.00 87.02 1,362.02 355.00 T Gr 1,980.00 425.00 Cqr (tcp ke 25.04 QYJ þ Ó n'- [çac * NONTAXABLE 1,360.00 3,000.00 275.00 32.65 2,000.00 35.27 650.00 1,370.00 340.00 14,387.00 Total 1,253.00 775.00 2,000.00 5,855.80 1,100.00 580.00 2,100.00 1,000.00 570.00 1,440.00 340.00 150.00 17,163.80 e tuh\ T o Comments ____ n49 leposit Date 36/01/09 36/01/09 36/01/09 36/04/09 36/08/09 36/12/09 36/15/09 36/15/09 36/17/09 36/19/09 36/19/09 36/19/09 36/19/09 36/19/09 36/22/09 36/22/09 36/25/09 36/25/09 36/25/09 36/29/09 Total: 1-09 leposit Date 37/01/09 37/01/09 37/03/09 37/07/09 37/07/09 37/07/09 37/07/09 37/09/09 37/10/09 37/13/09 37/24/09 37/24/09 37/24/09 37/24/09 Total: Jg-09 Deposit Date 08/05/09 08/06/09 08/12/09 03/31/09 Total: ap-09 Deposit Date 09/02/09 09/04/09 09/08/09 09/09/09 09/09/09 09/11/09 09/14/09 09/16/09 09/18/09 09/24/09 09/25/09 09/25/09 Total: et-09 Deposit Date 10/07/09 10/09/09 10/09/09 10/13/09 10/14/09 10/14/09 10/23/09 10/28/09 Total: Deposit Amount Description 25,000.00 Carlos p Britez 1,325.00 Euan Marshall 25,000.00 Deposit 2,400.00 Unknown 53,725.00 Deposit Amount Description 2,525.00 Unknown 30,000.00 Carlos P Britez 30,000.00 Carlos P Britez 29,000.00 Re-Deposited . 409.27 Moore Cadillac Refund 24,750.00 Re-Deposited .. 250.00 Unknown 15,000.00 Carlos P Britez 1,700.00 Unknown 1001/ 36,000.00 Carlos P Britez 34,000.00 Carlos P Britez 2,000.00 Transfer 205,634.27 Deposit Amount Description 2,000.00 Unknown 16,000.00 Carlos P Britez 2,500.00 Unknown 1,500.00 Unknown 33,500.00 Re-Deposit 150.00 Loudon Auto Part refund 22.83 Rosenthal Nissan refund 2,580.00 Ashleigh M De La Torre 58,252.83 CITIBANK - ACCOUNT 2920 2009 BUSINESS CHECKING OSVALDO BRITEZ DBA BRITEZ BROTHER'S . From Sch. C Personal Wire Transfers 25,000.00 Refunds Retumed Checks 1,325.00 r/ 2,400.00 3,725.00 25,000.00 0.00 -30-,000.00 0.00 Total ' 25,000.00 1,325.00 25,000.00 2,400.00 53,725.00 Comments Sch. C 2,525.00 250.00 From Personal Wire Transfers hefunds Returned Checks 30,000.00 30,00Ö.00 15,000.00 36,000.00 34,000.00 29,000.00 409.27 24,750.00 . 4,475.00 2,000.00 2,000.00 145,000.00 54,159.27 From Sch. C Personal Wire Transfers kefunds Returned Checks 16,000.00 2,500.00 t/ .4,59998 K 2,580.00 V 8,580.00 33,500.00 150.00 22.83 0.00 16,000.00 33,672.83 33,500.00 150.00 22.83 2,580.00 58,252.83 _ Total Comments 2,525.00 30,000.00 30,000.00 29,000.00 409.27 24,750.00 Y50.00 15,000.00 1,700.00 Fro voc, coUa00 36,000.00 34,000.00 2,000.00 205,634.27 Ck #1236 Veh $23500 Total Comments 2,000.00 cannot verify transfer 16,000.00 2,500.00 1,500.00 gp dag fqd tr g jwpt . Q +---NONTAXABLE i e r Nr ¶(1, (( +-- NONTAXABLE 9 <-- NONTAXABLE o T - o CITIBANK - ACCOUNT # 2009 BUSINESS CHE 920 G OSVALDO BRITEZ DBA BRITEZ BROTHER'S lov-09 Deposit Date Deposit Amount Description Sch. C Personal Wire Transfers Fmm Refunds Retumed Checks 11/04/09 11/04/09 11/04/09 11/09/09 11/10/09 11/10/09 11/12/09 11/13/09 11/13/09 11/13/09 11/13/09 11/16/09 11/18/09 11/18/09 11/18/09 11/18/09 - 11/19/09 11/20/09 11/23/09 11/24/09 11/30/09 Total: Michelle C LaRue Doupklas R Smith Yvette P Wilde . 1,900.00 Michaelt Leitöi 2,345.00 Unknown 162.44 Home Depot refund 20.87 Advance Autoisiitd 59,900.00 Cados P Bdtez 1,775.00 - 265.00 V 970.00 685.00 500.00 2,345.00 . -- - - - - . 16234 20.87 - 59,900.00 David Bear Carrillo Suman Sabharwal 720.00 Allsports Grand Prix, LLC 1,000.00 / 775.00 e 720.00 v 43,000.00 Carlos P Britez 1,920.00 RichardKeville Hon, fortney Pete Stark 33,000.00 Cados P Briter 52,238.00 Re-Deposited 67,990.00 Re-Deposited 2,700.00 Unknown 2,000.00 Prestige BMW Ramey 272,116.31 440.00 1,480.00 2,700.00 X Total . Comments - -- 265.00 970.00 685.00 1,900.00 $50 cash w/d fr dep 2,3-45.-00 162.44 (cid:16)042 20.'87 59,900.00 1,000.00 775.00 7(cid:0)576Õ.D0$2000 w/d dep to pers 43,0Öö.-00 - 43,Õ00.00 33,000.00 . . 13,805.00 0.00 135,900.00 Sch. C From Personal Wire Transfers 68,900.00 84,100.00 6 X 3,985.00 425.00 t/ " 1,300.00 1,740.00 .15,000.00 10,200.00 0.00 168,000.00 00 440.00 1,480.00 33,000.00 52,238.00 From 11/18/09 67,990.00 From 11/20/09 2,700.00 § o ( ch 2,000.00 Credit 272,116.31 tA q ftrsp d c a. ? IUS CO- 00 k>i.i s 54 'LM i o M e Total 68,900.00 84,100.00 300.00 ç p 1,500.00 3,985.00 425.00 1,650.00 820.00 15,000.00 30.98 1,300.00 1,740.00 56.21 180,287.17 Comments f e 7 ; n +- NONTAXABLE Qosik Tò ¼¡g d 2 o o c op ..den +- NONTAXABLE i o g w og fs Tr 0F ruk 0 F p e ¿r of ici C 52,238.00 67,990.0C 2,000.00 122,411.31 Refunds Retumed Checks 1,500.00 500.00 30.96 56.21 2,087.17 Deposit Date 12/02/09 12/03/09 12/08/09 12/09/09 12/10/10 12/11/09 12/14/09 12/16/09 12/16/09 12/17/09 12/17/09 12/21/09 - 12/22/09 12/29/09 Total: . Deposit Amount Description 68,900.00 Carlos P Britez 84,100.00 Cados P Britez 300.00 Unknown 1,500.00 Re-deposit 500.00 Loudon Auto Refund 3,965.00 David Bear Canillo 425.00 Unknown 1,650.00 Unknown - 820.00 15,000.00 Cados P Britez 30.98 H 1,300.00 Therese A Cvetkovich 1,740.00 Therese Cvetkovich 56.21 Home Depot 180,287.17