Exhibit 203b — USA v. Alexandra Acosta (Dkt. 81.15)

Summary

Government Exhibit 203b in United States v. Alexandra Acosta, entered on the docket 06/14/2024 as Document 81-15 in Case 0:23-cr-60170-RNS, is 12 pages of IRS examination workpapers by examiner Phyllis Kampmeyer on Alexandra Acosta's Form 1040 returns for tax years 2018 and 2019. The civil penalty lead sheet dated 04/01/2021 records that the taxpayer relied on a preparer, believed the returns accurate and asked that no penalty be assessed, and that reasonable cause was granted under Treasury Regulation 1.6664-4. The civil penalty approval form lists a 6662(d) substantial understatement penalty for 2018 and a 6662(c) negligence penalty for 2019 as the primary position, and a group manager approved not asserting the 2018 substantial understatement penalty.

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Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 1 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN: PS

Tax Form: 1040 Date: 04/01/2021

Tax Year(s): 2018, 2019

CIVIL PENALTY LEAD SHEET
In avery deficiency and/or erroneaus claim for refund or credit case, the consideration of penalties (assertion/non-assertion) must be fully
documented, Consideration of fraud, including fraud indicators, must be documented In all deficiency cases even if fraud is not pursued.

PENALTY ASSERTION

Complete a separate penalty lead sheet to fully document each penalty asserted (see Civil Penalty Job
Aid), as well as each penalty proposed as an alternative position (IRM 4.10.8.11.5). Penalties requiring
managerial approval per IRC 6751(b) must be approved on the Civil Penalty Approval Form (see separate
worksheet) before the case closes from the group.

Exception: Approval is not required for additions to tax under IRC 6651 (except 6651(f) per the IRM),

6654, 6655, or any other penalty automatically calculated through electronic means.

Enter Penalty Asserted (Use drop down menu to select or enter manually) WP Reference

PENALTY NON-ASSERTION

Documentation for non-assertion of applicabie penalties must be on this lead sheet, a penalty lead sheet, or a
supporting workpaper. “Applicable penalties” are defined in IRM 4.10.6.7.

Note: if the substantial understatement penalty is not asserted when there is a substantial understatement of tax
under IRC 6662(d), group manager approval is required (see below).

Comments WP Reference
TP was not educated in the field of taxes and no intentional disregard of rules or
regulations was evident based on TP’s oral testimony and all evidence provided
related to the case. TP used and relied on Mr. Vilsaint Stlouls (ATAT promotion) as
her preparer to file an accurate return based on her circumstances. TP provided all
documentation that was requested by the preparer. TP believed in good faith that the
tax return was accurate and compliant with the Tax Code. TP requested that no
penalty be assessed given she did not know of the inaccurate figures that Mr. Stiouis
placed on her Schedule C's. She does not know why Mr. Stlouis did not sign the
2018 return himself as he was the RP she worked with. (Reasonable cause granted
based on Treasury Regulation 1.6664-4)

Non-Assertion of Substantial Understatement Penalty Approval
IRC 6662(d) Substantial Understatement Year(s): 2018

Non-assertion of the substantial understatement penalty for the year(s) identified above is approved even though
there is a substantial understatement of tax under IRC 6662(d) (IRM 20.1.5,2.3(7)).

Group Manager Digitally signed by Valerie D.

Signature: Valerie D. Fitzgerald Fitzgerala Date: 04/01/2021
Date: 2021.04.01 12:35:38 -04'00"

PREPARER/PROMOTER/MATERIAL ADVISOR PENALTIES WP Reference
lf the return was prepared by a tax return preparer, document the preparer's
involvement in and oyioer for the preparation of the return. Caution: Do not

aah FM Peta eee Abt ava PERE Re grer’ s responsibility for errors and the WP #:300-1.

OF. QE, NOn-ass rer penalties (IRM 4.10.9.7.10),

Acosta GX 203b [0001]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 2 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN: PF

Tax Form: 1040 Date: 01/19/2021

Tax Year(s): 2018, 2019

CIVIL PENALTY APPROVAL FORM

PRIMARY POSITION

IRC Section and Penalty Name | Year(s)
6662(d) Substantial Understatement 2018
6662(c) Negligence 2019
ALTERNATIVE POSITION

IRC Section and Penalty Name Year(s)
6662{c) Negligence 2018

tam the immediate supervisor, acting supervisor, or designated higher level official of the individual who
made the initial determination of the penalties listed above and | personally approve them.

Signature of PY PY) VY? Digitally signed by S2FMB

Approver: Leg 7 bow Date: 2021.01.21 15:19:20 -05'00'

Name and Title of | 01/24/2024
Approver: Anthony DeCarvatho . Date:

(Please print or type)

Acosta GX 203b [0002]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 3 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN: |
Tax Form: 1040 Date: 04/01/2021
Tax Year(s): 2018, 2019
CIVIL PENALTY LEAD SHEET

In every deficiency and/or erroneous claim for refund or credit case, the consideration of penalties (assertion/non-assertion) must be fully
documented. Consideration of fraud, including fraud indicators, must be documented in all deficiency cases even if fraud fs not pursued.

PENALTY ASSERTION

Complete a separate penalty lead sheet to fully document each penalty asserted (see Civil Penalty Job
Aid), as well as each penaity proposed as an alternative position (IRM 4.10.8.11.5). Penalties requiring
managerial approval per IRC 6751(b) must be approved on the Civil Penalty Approval Form (see separate
worksheet) before the case closes from the group.

Exception: Approval is not required for additions to tax under IRC 6651 (except 6651 (f) per the IRM),
6654, 6655, or any other penalty automatically calculated through electronic means.

Enter Penalty Asserted (Use drop down menu to select or enter manually) ___WP Reference

PENALTY NON-ASSERTION

Documentation for non-assertion of applicable penalties must be on this lead sheet, a penalty lead sheet, or a
supporting workpaper. "Applicable penalties” are defined in IRM 4.10.6.7.

Note: If the substantial understatement penalty is not asserted when there is a substantial understatement of tax
under [RC 6662(d}, group manager approval is required (see below).

Comments WP Reference
TP was not educated in the field of taxes and no intentional disregard of rules or
regulations was evident based on TP’s oral testimony and all evidence provided
related to the case. TP used and relied on Mr. Vilsaint Stlouis (ATAT promotion) as
her preparer to file an accurate return based on her circumstances. TP provided all
documentation that was requested by the preparer. TP believed in good faith that the
tax return was accurate and compliant with the Tax Code. TP requested that no
penalty be assessed given she did not know of the inaccurate figures that Mr. Stlouis
placed on her Schedule C's. She does not know why Mr. Stlouis did not sign the
2018 return himself as he was the RP she worked with. (Reasonable cause granted
based on Treasury Regulation 1.6664-4)

lNon-Assertion of Substantial Understatement Penaity Approval
IRC 6662(d) Substantial Understatement Year(s): 2018

Non-assertion of the substantial understatement penalty for the year(s) identified above is approved even though
there is a substantial understatement of tax under IRC 6662(d) (IRM 20,1.5.2.3(7)). -

Icroup Manager

Signature: Date:

PREPARER/PROMOTER/MATERIAL ADVISOR PENALTIES WP Reference
If the return was prepared by a tax return preparer, document the preparer’s ;
involvement in and responsibility for the preparation of the return. Caution: Do not

, acument conc! VEGRF BIER EW. uf ee Barer s responsibility for errors and the WP #:300-1.

Lasse] Nos.gitie ass rer penalties (IRM 4.10.9,7.10),

Acosta GX 203b [0003]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 4 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN: ST
Tax Form: 1040 Date: 04/01/2021
Tax Year(s): 2018, 2019
CIVIL PENALTY LEAD SHEET

In every deficiency and/or erroneous claim for refund or credit case, the consideration of penalties (assertionnon-assertion) must be fully
documented. Consideration of fraud, including fraud indicators, must be documented in all deficiency cases even if fraud Is not pursued.

PENALTY ASSERTION

Complete a separate penalty lead sheet to fully document each penaity asserted (see Civil Penalty Job.
Aid), as well as each penalty proposed as an alternative position (IRM 4.10.8.11.5). Penalties requiring
managerial approval per IRC 6751(b) must be approved on the Civil Penalty Approval Form (see separate
worksheet) before the case cioses from the group.

Exception: Approval is not required for additions to tax under IRC 6651 {except 6651(f) per the IRM),
6654, 6655, or any other penalty automatically calculated through electronic means.

Enter Penaity Asserted (Use drop down menu to select or enter manually) WP Reference

PENALTY NON-ASSERTION

Documentation for non-assertion of applicable penalties must be on this lead sheet, a penalty lead sheet, or a
supporting workpaper. “Applicable penalties" are defined in IRM 4,10.6,7,

Note: If the substantial understatement penalty is not asserted when there Is a substantia! understatement of tax
under IRC 6662(d), group manager approval is required (see below).

Comments WP Reference

TP was not educated in the field of taxes and no intentional disregard of rules or
regulations was evident based on TP's oral testimony and all evidence provided
related to the case. TP used and relied on Mr. Vilsaint Stlouis (ATAT promotion) as
her preparer to file an accurate return based on her circumstances. TP provided all
documentation that was requested by the preparer. TP believed in good faith that
the tax return was accurate and compliant with the Tax Code. TP requested that no
penalty be assessed given she did not know of the inaccurate figures that Mr. Stlouis
placed on her Schedule C's. She does not know why Mr. Stlouis did not sign the

2018 return himself as he was the RP she worked with. (Reasonable cause granted
based on Treasury Regulation 1.6664-4)

lINon-Assertion of Substantial Understatement Penalty Approval
IRC 6662(d) Substantial Understatement Year(s); 2018

Non-assertion of the substantial understatement penalty for the year(s) identified above is approved even
though there is a substantial understatement of tax under IRC 6662(d) (IRM 20.1,5.2.3(7)).

Group Manager

Signature: Data:

PREPARER/PROMOTER/MATERIAL ADVISOR PENALTIES WP Reference
if the return was prepared by a tax return preparer, document the preparer's
involvement in and responsibility for the preparation of the return. Caution: Do not
document conclusions regarding the preparer's responsibility for errors and the
assertion or non-assertion of return preparer penalties (IRM 4.10.9,7.10).

300-Civil_Penalty_and_Approval_Form_FV2_02152024_160419 WP #:300-1.1
Rev. 12/2019

Acosta GX 203b [0004]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 5 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN: a
Tax Form: 1040 Date: 01/19/2021
Tax Year(s): 2018, 2019

CIVIL PENALTY APPROVAL FORM
PRIMARY POSITION
IRC Section and Penalty Name , Year(s)
6662(d) Substantial Understatement 2018
6662(c) Negligence 2019
ALTERNATIVE POSITION
IRC Section and Penalty Name Year(s)
6662(c) Negligence 2018

. Lam the immediate supervisor, acting supervisor, or designated higher level official of the individual who
made the initial determination of the penalties listed above and | personally approve them.

Signature of
Approver:

Name and Title of
Approver:

’ Date:

{Please print or type)

Acosta GX 203b [0005]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 6 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN:
Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912

Initial Interview Questions and Notes

Please record any interview questions or notes below.

i £43)
loz

A. Was return prepared for compensation? Xx
(If yes, complete remaining items.) __
Preparer B. Did the preparer sign the return and include the X
Information appropriate identification number(s)? .
Did taxpayer receive a copy of return? _lancrvcn
Did preparer negotiate refund? Xx
What information or documents did the T/P provide to
the preparer?

Commenis: (/f either B or C is “No” consider preparer penalties. }( if D is “Yes” consider preparer penalties)

moO

12-17-2020: BSO deputy. R/E agent on the side.

TP has been having Mr. Stlouis prepare her return for 4-5 years. TP makes an appointment
and goes to the Davie office. She takes her W-2 and F1099-MISC and F1098. She takes in
some of the receipts for purchases (advertising), cc statements, gas receipts, supplies for
home office, etc for the Schedule C expenses.

She and RP figured out the expense together. TP doesn’t really know exactly how they
come up with figures. She has a figure in her head as to what she spent and then she gives
him her paperwork. She believes he analyzes it pretty well since she’s there for a while. She
says that the figure he puts on the Schedule C is pretty close to what she has in her head.
She sat with Vilsaint Stlouis for 2018 and 2019, She does not know Jesus Medina who
signed her 2018 return. She doesn’t remember whether she received copies of the returns
or not. She has not reviewed her returns since she got the L6323. She simply called the RP
and he said he would take care of everything about the examination.

TP recalls that RP went over the retums with her each year, however, she can't recall if she
had any questions about any part of them since it was a while ago.

TP paid via credit card. TP received direct deposits.
TP cannot recall if she signed anything.

TP states that RP told her if the IRS had questions, she should ask for his assistance and
he would assist her.

After explaining some of the expenses on the 2018 Schedule C, TP reiterated that all
| figures and expenses on the Schedule C’s are info that she and RP came up with together.

400 -2-Initial interview Questions TCO , Workpaper# 400 ~— -2.1
Rev, 2-2010

Acosta GX 203b [0006]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 7 of 12
Taxpayer Name: XANDRA Examiner: Kampmeyer, Phyilis
TIN:
Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912

She did not leave it all to him.

TCO explained that she may have more questions in the future and TP agreed to answer
them if needed.

Yes | N
fe)
Was the taxpayer previously contacted by the IRS? x
(lf yes, list years and explain below.)

ae nS Has the taxpayer been previously audited?
ontacts or (If yes, list years and explain below.)

Prior Audits — [Do repetitive audit procedures apply?

Was amended return(s) filed? X
if “yes”, when? (secure a copy from the T/P, check IDRS
to see if posted )

Commenis: (issues/Reasons)

Required ;
Returns Go to Lead sheet 130-1.1

Initial Interview Questions and Notes _

Reported or Received but
None Received | not Reported
Alimony None
Bartering None
« Income from exchange of personal services or
merchandise
« Income from bartering clubs or organizations

Income
Probe

Child Support None
Commissions Reported —
400 -2-Initial Interview Questions TCO Workpaper# 400 “2.2

Rev, 2-2010

Acosta GX 203b [0007]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 8 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyilis
TIN: Fe
Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912
Sch C
Dividends None
Employer Reimbursements None
Estate/Trust None
Foreign Accounts None
Gambling/Lotteries None
Gifts/Inheritance None
Hobbies ; ; "| None
Insurance Proceeds . None
interest from Banks or Savings and Loans None
Investments None
IRA/Keogh Distributions None
Loans None
Military Allowance None
Mortgage (second) None
Other Jobs Reported —
Sch C
Partnerships None
Pensions, Annuities, Profit-sharing None
Prizes, Awards, Bonuses None
Rent/Royalty None
Sale of Assets —Real estate sales (rental, personal home | None
or other)
Scholarship, Fellowship, Grant None
Sick Pay None
Social Security. i. None.
State/Local Tax Refund None
Stock Sales None .
Tips None
Unemployment Compensation None
VA Benefits None
Welfare None
Comments: (Mandatory in order to document the nature and extent of the income Probe
TP is a Broward County Deputy Sheriff. TP is married to Erin Thompson as of 2018. TP
owns her own home in Tamarac where she lives with her wife and her wife’s children.
Initial Interview Questions and Notes
x = - Name Age : Relationship Other Information
Lli g ¢
400 -2-Initial interview Questions TCO , Workpaper# 400 2.3
Rev, 2-2010

Acosta GX 203b [0008]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 9 of 12
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: Kampmeyer, Phyllis
TIN:
Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912
Coa

Additional Items:

Business Supplement | Go to Lead sheet 125-3.1

400 -2-Initial interview Questions TCO , Workpaper# 400 2.4
Rev, 2-2010

Acosta GX 203b [0009]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 10 of
Taxpayer Name:

TIN:
Tax Form:

Tax Year (s):

ACOSTA, ALEXANDRA

Examiner: Kampmeyer, Phyllis
1040 Date:
2/20/2024

Initial Interview Questions and Notes
Business Supplement
Please record any interview questions or notes below.
TP is a real estate agent selling residential homes in Broward and Miami
Dade county.
Brief GR is determined by F1099-MISC.
meant of Expenses: car expenses, advertising, home office, office supplies,
B ¥ ¥ internet, cell phone, fees paid to brokerage, license
usiness
Operation TP uses debit cards and credit cards to pay for expenses. She only has
one bank account and intermingles the expenses with personal expenses.
How long in business? | Has business sustained a loss in prior or subs.
year?
Business Several years Losses
History Number of Employees
e Fulltime None
e Parttime
Accounting x_ Cash Accrual | ___ Hybrid
Method Who keeps the books? TP
Beginning of Year End of Year
Cash on Home $ $
Hand Business $ $
Elsewhere $ $
Business Account Number | Personal Account Number
Where do You
Maintain Your
Bank
Accounts?
Were all business and personal expenses kept separately? No.
Banking Were all business receipts deposited? To which account? Not sure.
Practices
How are business expenses paid? Debit card, credit cards

400 -3-Initial Interview Questions-TCO Business Supplement

Rev. 2-2010

Workpaper# 400 3.4

Acosta GX 203b [0010]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 11 of
Taxpayer Name: ACOSTA, ALEXANDRA Examiner: |Kampmeyer, Phyllis
TIN:
Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912
Safety Deposit | Location Contents
Box
Any withdrawals of purchases for personal use?
Purchases
Any transactions between you and a relative or related party?
Related Yes____x__No
Transactions If yes, explain.
. How were gross receipts calculated? From F1099-MISC
Gross Receipts
Are inventories material? _ Yes _x_No
Did beginning and ending balances agree with
prior and subsequent? Yes No
; Where there any changes in method of valuing
Inventories, if | inventories? Yes No
licabl
appheable When taken:
How:
Include year-end purchases? : Yes No
Any write-offs or write downs? Yes No
Description Amount Per | Bus WP Ref
Loans, Notes,
Mortgages
Payable
Description Amount Purchaser WP Ref
Capital Items
Sold
Description Amount Seller WP Ref
Capital Items
Purchased
400 -3-Initial Interview Questions-TCO Business Supplement Workpaper # 400 3.2
Rev. 2-2010

Acosta GX 203b [0011]
Case 0:23-cr-60170-RNS   Document 81-15   Entered on FLSD Docket 06/14/2024   Page 12 of
Taxpayer Name: a, Examiner: |Kampmeyer, Phyilis
TIN:

Tax Form: 1040 Date:
2/20/2024
Tax Year (s): 201812, 201912
400 -3-Initial Interview Questions-TCO Business Supplement Workpaper# 400 3.3 |
Rev, 22010

Acosta GX 203b [0012]


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