- 7 -
Mrs. Ghadiri $360 - 0 - $1,600 $1,960
Maple Press - 0 - $10,922 - 0 - 10,922
Print
Technology 13,725 6,050 - 0 - 19,775
Total 14,085 16,972 1,600 32,657
For their 1988 taxable year, petitioners received but did not
report interest income of $9.
Respondent used a bank deposits analysis to reconstruct
petitioners' income for 1986, 1987, and 1988. Respondent
determined that petitioners' print shops' checking accounts had
total deposits of $485,974, $394,648, and $295,085 for 1986,
1987, and 1988, respectively. The notice did not specifically
mention "Maple Press" even though the deficiencies determined in
the notice of deficiency for 1986, 1987, and 1988 took into
account only gross receipts from Maple Press. Following
discussions with petitioners, respondent adjusted petitioners'
deficiencies to include in their gross income gross receipts from
Acacia Press and Print Technology. Although respondent included
the gross receipts from additional stores in making her
revisions, the deficiencies for 1986 and 1987 are lower, as a
result of respondent's adjustments, than originally determined
because respondent gave petitioners credit for additional
inter-account transfers and ordinary and necessary business
expenses.
Mr. Ghadiri received a bachelor's degree in electrical
engineering at the University of California at Berkeley, a
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