Michael and Michelle Rough - Page 3

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          Petitioner acknowledged that during the year in issue he received           
          Amway sales commissions from the Langeliers and Mullaneys.                  
          Furthermore, petitioner testified that he received the Forms                
          1099.  However, petitioner stated that the Langeliers Form 1099             
          was received 6 or 9 months after petitioners' 1991 Federal income           
          tax return had been filed.  With respect to the Langeliers Form             
          1099, petitioner conceded that he received the amounts reported             
          except for two checks totaling $94.62 (missing checks).  The                
          documentation that supported the Langeliers Form 1099, with the             
          exception of the missing checks, was admitted into evidence as              
          respondent's Exhibit E.                                                     
               Mr. Langeliers testified at trial that the missing checks              
          were issued to petitioner and cleared his account, but that he              
          was unable to obtain copies of the checks.  Petitioner contends             
          that Mr. Langeliers was unable to produce the missing checks                
          referred to as check number 2737 and 2738 in the amounts of                 
          $26.10 and $68.52, respectively.  However, petitioner produced no           
          records to support his testimony that he did not receive the                
          missing checks.  Furthermore, petitioner was given ample                    
          opportunity to cross-examine Mr. Langeliers; during petitioner's            
          cross-examination of Mr. Langeliers, instead of addressing the              
          notice of deficiency, petitioner attempted to introduce into                
          evidence a document called "CODE BREAKER - The � 83 Equation",              
          which was marked for identification as petitioners' Exhibit 3.              






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