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petitioner turned in a "stop", he turned in the ledger receipts
for that subscriber.
During the years in issue, petitioners maintained a joint
personal checking account. Petitioner did not maintain a
separate account for his newspaper delivery service. During the
years 1991 and 1992, petitioners deposited $25,535.97 and
$24,030.84, respectively, into the joint account. The sources of
the deposits were not specifically identified, but most likely
included the net wages earned by Kathleen Newsome during those
years, unemployment compensation paid to one or both of the
petitioners, and on occasion earnings attributable to one of
their children. Checks that petitioner received from the Star
Telegram were also deposited into this joint account.
Considering the amounts of the specific deposits it appears that
few consisted of cash. Petitioner did not make any payments to
the Star Telegram with checks drawn on this joint account.
In addition to items not in dispute, the Schedules C
relating to petitioner's newspaper delivery service business
included with petitioners' 1991 and 1992 Federal income tax
returns reflect the following:
1991 1992
Gross receipts or sales $21,000 $21,500
Cost of goods sold 3,329 2,905
Included in the computation of cost of goods sold for each year
were amounts for materials, supplies, and labor. No portion of
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