Mark Massingill and Indra Massingill - Page 16

                                         16                                           
          for any other aspect of the metal mining and refining activity in           
          1990.  Petitioner also submitted a daily log of his activities              
          which incorporates 1990.  However, much of what is written down             
          in that journal contains unexplained abbreviations.  There are              
          blank spaces for a large number of days each month for 1990.                
          Moreover, petitioner’s compendium is not an adequate substitute             
          for books or records of income and expenses.  For example, unlike           
          the records of sales of mercury, this does not list customers,              
          the kind of work performed, and the amounts charged, if any.                
          Thus, we cannot say that petitioner maintained adequate and                 
          accurate books of accounts.                                                 
               Petitioner’s marketing activities were, at best, minimal.              
          He advertised in the "California Mining Journal".  Petitioner               
          distributed a prospectus on his sales policies to possible                  
          clients.  He also attended trade shows where he could meet                  
          prospective customers.  The records of sales of mercury show that           
          most of petitioner’s clients came from within California.  There            
          were very few clients who were from out of State.  Other than the           
          above factors, petitioner presented no evidence that he actively            
          sought business.  Petitioner has not specifically shown any other           
          marketing activities in 1990.                                               
               In addition, petitioner had no business plan.  At trial,               
          petitioner testified that he did not expect to earn a profit                
          immediately during 1986, before the dispute with DHS.  He                   
          expected to do so in 1987 but did not do so.  The record reflects           




Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011