Banker, CPA talk business records at Neilson trial

11:34 – Govt. calls Hogan Allen, a Jackson CPA. Began to handle Neilson’s accounting work in 2002 when at Eubanks & Betts before he established own firm later. Prepared Neilson’s tax returns from 2002-2006.

Allen identifies three tax returns. Third is different as electronically filed.

Allen says returns in 2004 and 2005 were affected by Neilson’s partnership in C&G. Says Neilson indicated he was an active partnership of C&G on a daily basis, which fit a certain tax category, in those years.

Allen says Neilson did not tell him he owned the FBI building or about any assets of C&G.

Next, e-mail from Neilson to Allen dated Aug. 8, 2005. Says he bought a 1/3 interest in a building under a construction loan that was partially occupied by the federal govt. for most of 2004. Says govt. wired “into our account” all back rent on Dec. 31, 2004. Allen says it indicates he’s a participant in the company.

Another communication from Neilson, to prepare 2004 returns, says he’s a 1/3 partner in C&G and ACM.

2004 tax return for Neilsons shows listing of C&G and ACM businesses. In 2005 return, shows Neilson lists ACM and C&G interests. Allen says Neilson’s role described as partner. For 2006 return, Allen says Neilson reports partnership in ACM and C&G, plus a dry-storage in Oxford.

For 2005 tax returns, Allen identifies hand-written note from Neilson (previously examined by Covington) on DOJ/FBI letterhead. Neilson says he’s an active manager, “almost on a daily basis” for the construction project. Neilson apparently seeks a greater tax advantage because of involvement. Also notes expenses he forgot to list. As an “active member,” Allen says it changes the way in which the dollars are treated on his tax return. As active, income or loss is reported at full value, Allen says.

Allen said Neilson found a new tax preparer after 2006.

Read more: NEMS360.com – MORE TODAY Banker CPA talk business records at Neilson trial

NEMS360.com
11/10/11