- 33 -
feasible to get the cash register repaired, and petitioners never
replaced it;
(d) Mr. McGirl testified to and offered into evidence a loan
summary which shows 101 separate loans over a 3-year period. At
all times, petitioners had more in savings than they allegedly
owed. According to petitioners' exhibits, a $1,000 check was
written on February 21, 1989, to their savings account. Yet 2
days later, on February 23, 1989, Mr. McGirl allegedly borrowed
$1,000 from Mr. McAllister. On July 7, 1989, Mr. McGirl wrote a
$1,500 check for deposit into the savings account and then
supposedly borrowed $1,000 on the same day. This pattern of
borrowing money shortly after depositing money into savings is
repeated over the 3-year period.
(e) Mr. McGirl claimed that he did not make up the numbers
on the Yogurt Station's corporate tax returns, but instead
"guesstimated" them. According to Mr. McGirl, a guesstimate is a
number that he believes is accurate, erring on the conservative
side. Mr. McGirl's guesstimates of income and expense, when
considered as a whole, showed a net loss over a 3-year period
while petitioners accumulated more than $112,000 in savings.
When questioned by Ms. Berg as to how he came up with the
numbers, Mr. McGirl said "he just guessed, he pulled the numbers
'out of the air.'"
(f) Mr. McGirl testified that he saw no need to keep
records, receipts, invoices, cash register receipts, leases, or
any other business records.
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