Hi Dave,

 

Please note, I am not questioning if your Hotsy is still there.

Rather, I’m asking when you sold it?

Similarly, when did you dispose of the Mister?

 

Thanks,

 

Marty

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Friday, April 17, 2015 12:54 PM
To: Martin Shaw
Subject: Re: Coffaro

 

What mister, did you see one here. Seriously there is no Hotsy here. Maybe Dennis got things wrong. I want you to document ALL the equipment you found here. I am really upset. Please send me another spreadsheet with all you saw here, no more!!!.......Dave

On 4/17/2015 11:46 AM, Martin Shaw wrote:

Hi Dave,

 

First off, I do not think you are hiding anything.

 

Before I send you a revision, when did you sell the Hotsy Steam Machine?

Also, when did you dispose of the Mister?

 

Marty

 

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Friday, April 17, 2015 11:07 AM
To: Martin Shaw
Subject: Re: Coffaro

 

I just looked at my Quickbook file and I see no mention of this equipment you say is still on the site. I don't know where my accountant got this stuff. I told you the Hotsy was sold, I think for $1000. It is not mentioned in Quickbooks. Did you see it here?!!! I am waiting for your new spreadsheet. I will not sign anything until you document everything you saw here. AGAIN, I am not hiding anything!!! I could go on AND did you see the pizza oven. It is a personal item in my house.........Dave

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Friday, April 17, 2015 10:55 AM
To: Martin Shaw
Subject: Re: Coffaro

 

Thanks Martin. I am very confused by several entries. What do you mean "Assume still on site"!! I let you look around for two hours and even pointed out several pieces of equipment that you would never have noticed SO please remove the mentions of still on site and I will look it over again. Be specific on what you think these pieces of equipment are. Do you think I am still hiding something?...........Dave

 

On 4/17/2015 10:36 AM, Martin Shaw wrote:

Hi Dave,

 

Per our site walk yesterday, I have revised the asset listing (see attached excel and PDF files).

Please note, this list has been categorized as follows:

1)      Assets per 2013 Federal Depreciation Schedule for David Coffaro Winery Inc.

2)      Trade-in value adjustments to booked costs

3)      Additional assets per 2013 Federal Depreciation Schedules for David F & Patricia N Coffaro (attached to Form 1040)

4)      Additional assets per 4/16/15 site walk

5)      Additional assets per P&L's

 

Following your review, let me know if you have any questions.

If not, please sign, date and return.

 

Thanks,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 14, 2015 4:36 PM
To: Martin Shaw
Subject: Re: Coffaro

 

Great, I look forward to your visit..........Dave

On 4/14/2015 3:12 PM, Martin Shaw wrote:

Hi Dave,

 

How about we meet this Thursday at 10 A.M.?

 

Regarding the signed asset listing, I’ll bring a copy for you to sign during our visit (or you can have one ready for me).

 

Thanks,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 14, 2015 1:20 PM
To: Martin Shaw
Subject: Re: Coffaro

 

To reply first, I am available any of those days for you and Beverly to visit. I would be happy to show you around. This morning we had some trouble with our vineyard pump. I don't see it mentioned specifically but could it be the Vineyard Yard Equipment for $24,000. I assume a pump is not business property fixtures and may be Personal Property? When the people come out for the repair, I will ask about when the job was done. I can't find the invoice. I will look at you attachment and get back to you. I am so happy I am starting to understand the whole process. I think I have a new accountant lined up. His name is Ron Conte. Ask Beverly if she knows him. I will contact him to go over everything later this week...........Dave

On 4/14/2015 12:18 PM, Martin Shaw wrote:

Hi David,

 

Regarding your 2014 Tax Bill, these are the general differences

·         Personal Property = business property not fixed to the ground

·         Fixed Improvements = combination of business property fixtures (support business process) and real property fixtures

·         Structural improvements = structures improved on the land (i.e. house, barn, garage…)

 

Please note, I do not assess real property fixtures or structural improvements. If you have other questions surrounding these topics, I’ll connect you with a real property appraiser.

Similarly, I do not assess Growing Improvements. However, I believe you are right.

 

As for the value of your business property, we have not yet determined these figures.

Following the conclusion of this audit, I will mail you the audit findings with more information about values and classifications.   

 

As for the asset listing, I have revised per your last email (see attachment). Please note, this list is based off the 2013 Federal Depreciation Schedule.

I highlighted all fields in yellow requiring further information. Please complete to your fullest, sign, and return.

 

Regarding a site visit, would you be available this Thursday (April 16), next Wednesday (April 22) or Thursday (April 23)?.

If so, let’s arrange a time for Beverly and I to visit.

 

Thanks,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 14, 2015 9:20 AM
To: Martin Shaw
Subject: Re: Coffaro

 

I come up with $290,600 for equipment. You are more than welcome to come out and take a look for yourself because I could be missing some equipment that I put ?'s after in your spreadsheet. Can you explain the difference of Structural Improvements, Personal Property and Fixed Improvements. I assume Growing Improvements are the Grape Vines? What would this $290,600 be classified as? I am not signing right now, I want to hear back from you. Also didn't you show me some additional equipment that Dennis put in on another depreciation list? Thanks, it was nice to meet you and Beverly...........Dave

On 4/13/2015 5:01 PM, Martin Shaw wrote:

Hi David,

 

Thanks for the meeting today.

Per our conversation, see attached asset listing from the 2013 Federal Depreciation Schedule for “David Coffaro Winery, Inc.”

 

I have updated the column “Still in Posession” per your notes.

 

Please complete this spreadsheet as follows:

·         Mark an X under the column “Still in Posession” for any other assets still possessed by David Coffaro Winery, Inc.

·         For all assets disposed or sold, indicate what year this occurred.

·         Print, sign, and return this listing to me via email, fax or mail.

 

If you have any questions, please don’t hesitate to call me.

 

Regards,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Monday, April 13, 2015 9:48 AM
To: Martin Shaw
Subject: Re: Coffaro

 

I am real busy but I will try to look it over.......Thanks........see you soon.........Dave

On 4/13/2015 9:41 AM, Martin Shaw wrote:

Hi Dave,

 

We’ll see you in a few hours.

 

If you have time, you may find the following link (Frequently Asked Questions about Business and Personal Property Taxes) to be insightful:

 

http://www.sonoma-county.org/Assessor/buspropassmt.htm

 

Regards,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: Martin Shaw
Sent: Friday, April 10, 2015 8:06 AM
To: 'David Coffaro'
Cc: Beverly Esperon
Subject: RE: Coffaro

 

Hi Dave,

 

Sounds good, we’ll see you on Monday, April 13, at 2:30 P.M.

 

Per your request, my supervisor, Beverly Esperon, will also be joining us.

 

Regards,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Thursday, April 09, 2015 7:41 PM
To: Martin Shaw
Subject: Re: Coffaro

 

I will be there, be prepared. I will have questions as you have seen in last emails.........Thanks so much I look forward to the meeting. Will there be anyone else there? I will be alone............... Dave

On 4/9/2015 5:01 PM, Martin Shaw wrote:

Hi Dave,

 

I have reviewed the CA Depreciation Schedules you provided.

Unfortunately, these do not provide any new information, as they are very similar to the Federal Depreciation Schedules already provided.

·         Note: I attached the 2012 & 2013 Federal Depreciation Schedules for your reference.

 

As for your other comments/questions, see my answers in blue below:

 

Please let me know if you still want to meet on Monday.

 

Regards,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Wednesday, April 08, 2015 1:46 PM
To: Martin Shaw
Subject: Re: Coffaro

 

I will scan soon when I can get my wife away from the computer that has the scan on it :-) . I just took a look at the 2011, 2012 and 2013 schs and I am missing the first page of the 2011, I think. As you will see the other schs start with 1999. That is why they are all so high. Most of the early property are completely depreciated. I assume you do not charge me for old equipment?   Unless disposed, equipment that is fully depreciated on your books will remain assessable. However, we do take age into consideration when valuing equipment

I copied below from your email and it looks like you may have put 2013 in the last line instead of 2012? Indeed, I meant to write 2012.  It also states you have the schs already so why do you need me to send them again?  I am asking for Depreciation Schedules that tie to your 2012 & 2013 Federal Income Tax Returns (Form 1120, Schedule L, Line 10a), as they should tie out. The 2012 & 2013 Depreciation Schedules provided to me (see attached) are materially different than the Federal Income Tax Returns provided. Unless I receive Depreciation Schedules that tie out to the Federal Income Tax Returns, I will have to assume the difference pertains to assessable business property. Therefore, I encourage you to provide Depreciation Schedules that tie out, so that I don’t have to make this assumption.         ........Dave

At this point I have Federal Income Tax Returns and Depreciation Schedules for 2012 & 2013 for David Coffaro Winery Inc.

However, there are material discrepancies between these documents:

·         The 2013 Federal Income Tax Return (Form 1120, Schedule L, Line 10a) shows total depreciable assets of $3,255,106

o   However, the 2013 Depreciation Schedules only shows $1,922,905 in total depreciable assets.

§  This is a $1,332,201 difference!

·         Similarly, The 2012 Federal Income Tax Return (Form 1120, Schedule L, Line 10a) shows total depreciable assets of $3,091,548

o   However, the 2013 Depreciation Schedules only shows $1,513,286 in total depreciable assets.

§  This is a $1,578,262 difference!

On 4/8/2015 10:32 AM, Martin Shaw wrote:

Hi Dave,

 

Assuming the bottom line numbers tie to the Federal Income Tax Return, that should be sufficient.

 

Marty

 

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Wednesday, April 08, 2015 10:29 AM
To: Martin Shaw
Subject: Re: Coffaro

 

I have been real busy with our Club so I just looked at the dep schs and they are in a State form. I assume that is OK with you?.......Dave

On 4/7/2015 4:33 PM, Martin Shaw wrote:

Hi Dave,

 

We’ll see you on Monday, April 13^th, at 2:30.

If you’re able to find the 2012 & 2013 Depreciation Schedules that tie to your Income Tax Returns, please email them to me or bring with you on Monday.

 

Regards,

 

Marty Shaw

Auditor-Appraiser

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

 

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 07, 2015 3:24 PM
To: Martin Shaw
Subject: Re: Coffaro

 

Of course. Like I said I want to get to the bottom of this. I suspect I need a new accountant, but that won't solve the problem now.........Dave

On 4/7/2015 2:59 PM, Martin Shaw wrote:

Hi Dave,

 

Would you be able to meet us here at the Assessor’s Office on Monday, April 13^th, at 2:30?

 

Thanks,

 

Marty Shaw

Auditor-Appraiser

 

Sonoma County Assessor's Office - Business Property

585 Fiscal Drive, Room 104

Santa Rosa, CA 95403

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

IMPORTANT NOTICE: This e-mail transmission, and any documents, files, or previous e-mail messages attached to it, are for informational purposes only and not intended to be legal, accounting, or tax advice. Recipients are encouraged to consult with appropriate and accredited professional advisors for advice concerning specific matters before making any decision. Although every effort is made to ensure the correctness of the information contained herein, the Assessor's Office does not warranty or guarantee the accuracy of the information provided.

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 07, 2015 1:51 PM
To: Martin Shaw
Subject: Re: Coffaro

 

Martin I just read over all the correspondence between you and Dennis. We need to sit down together with your supervisor. I thought we sent in info to your department every year so something is wrong. Please let me know when we can get together........Thanks........Dave

On 4/7/2015 12:41 PM, Martin Shaw wrote:

Hi Dave,

 

This Business Property Tax Audit covers the lien dates 1/1/11, 1/1/12, 1/1/13, and 1/1/14.

Therefore, I need Federal Income Tax Returns and Depreciation Schedules that support these dates.

If you report on a calendar year, this would include Federal Income Tax Returns and Depreciation Schedules for tax years 2010, 2011, 2012, & 2013.

 

At this point I have Federal Income Tax Returns and Depreciation Schedules for 2012 & 2013 for David Coffaro Winery Inc.

However, there are material discrepancies between these documents:

·         The 2013 Federal Income Tax Return (Form 1120, Schedule L, Line 10a) shows total depreciable assets of $3,255,106

o   However, the 2013 Depreciation Schedules only shows $1,922,905 in total depreciable assets.

§  This is a $1,332,201 difference!

·         Similarly, The 2012 Federal Income Tax Return (Form 1120, Schedule L, Line 10a) shows total depreciable assets of $3,091,548

o   However, the 2013 Depreciation Schedules only shows $1,513,286 in total depreciable assets.

§  This is a $1,578,262 difference!

 

Therefore, at minimum, please provide Depreciation Schedules for 2012 & 2013 that tie to your Federal Income Tax Returns (Form 1120, Schedule L, Line 10a).

Otherwise, I will have to assume the difference pertains to assessable business property.

 

As for when I need these documents, I can extend my request until tomorrow at noon.

After this point, I must move forward and finalize this audit.

 

Please note, after I finalize this audit, I will send out the findings.

You will have 10 days to review the findings and respond with any additional information.

 

After the 10 days, if you disagree with the audit values, you will have 60 days to file an appeal.

 

With all this said, please provide the Depreciation Schedules for 2012 & 2013 that tie to your Federal Income Tax Returns by tomorrow at noon.

 

I appreciate your prompt assistance with this request.

If you need further clarification, please contact me at the number below.

 

Marty Shaw

Auditor-Appraiser

 

Sonoma County Assessor's Office - Business Property

585 Fiscal Drive, Room 104

Santa Rosa, CA 95403

 

Direct Line:  707-565-1930

Fax: 707-565-3317

Email: Martin.Shaw@sonoma-county.org

 

IMPORTANT NOTICE: This e-mail transmission, and any documents, files, or previous e-mail messages attached to it, are for informational purposes only and not intended to be legal, accounting, or tax advice. Recipients are encouraged to consult with appropriate and accredited professional advisors for advice concerning specific matters before making any decision. Although every effort is made to ensure the correctness of the information contained herein, the Assessor's Office does not warranty or guarantee the accuracy of the information provided.

 

From: David Coffaro [mailto:david@coffaro.com]
Sent: Tuesday, April 07, 2015 10:14 AM
To: Martin Shaw
Subject: Coffaro

 

Can you let me know what you need. Like Dennis said we cannot find the 2011. I think we might have given it to the IRS lady who came in last year to check our credit card totals. We do not have distributors so we receive very few checks......long story. Why wouldn't the 2012 or 2013 or the 2014 work for you? Why do you need to go back so far? I am sorry but I know very little about this. Again, when is this supposed to be done?

BTW, I see I paid for schools , hospital, dam project, college, mosquito (I have not seen the mosquito guy out here for three years). I see personal, fixed, structural and growing. Which one are you looking at?. I know we have very little personal property so that total of $587,00 seems way off..........Thanks..........Dave