William W. Halle IV, and Janice C. Halle - Page 7

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               In 1990, as in previous years, petitioner maintained the               
          financial records for his locksmith business and prepared the               
          Schedule C for the business as well as the rest of petitioners'             
          joint Federal income tax return.  Petitioner did not hire an                
          accountant, return preparer, or anyone else to help him maintain            
          his business or financial records or prepare the tax return.                
               During 1990, petitioner used two different computer                    
          accounting systems to maintain his financial records.  He                   
          personally made all entries into both systems.                              
               Petitioner first used computer accounting system software              
          called Managing Your Money (MYM).  From January 1, 1990, until              
          approximately  July 15, 1990, petitioner entered expense items              
          into the MYM system on his computer.                                        
               After using MYM for a time, petitioner discovered that it              
          did not perform tasks he felt were necessary for his business.              
          To remedy this situation, a second computer accounting software,            
          DAC Easy (DAC), was installed on petitioner's computer prior to             
          July 15, 1990.  Petitioner was then able to use either MYM or               
          DAC.  From approximately July 15, 1990, to December 31, 1990,               
          petitioner entered his business expenses into DAC, and he no                
          longer made entries into MYM.                                               
               Thus, at the end of 1990, petitioner essentially had two               
          separate expense records, one on MYM and the other on DAC.                  
          Neither the MYM nor the DAC expense records were complete.  MYM             






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