- 19 - respondent's failure to make a similar adjustment for August 1989 bank deposits. In paragraph 4.(h) of its petition to the Court, petitioner assigned as error the following: The Commissioner erred in failing to reduce gross receipts for Petitioner's taxable year ended July 31, 1990 [8-01-89 to 7-31-90], by amounts deposited to Petitioner's bank account during August of 1989 which represent payment of work performed by the Petitioner during its fiscal year ended July 31, 1989 [8-01-88 to 7-31-89]. [Bracketed material added by the Court.] Respondent denied that allegation in the answer and at trial asserted that petitioner had never submitted any substantiation as to any such August 1989 bank deposits that should be shifted. Petitioner still has not submitted any substantiation. At trial petitioner presented Berry's testimony and proffered No. 2's bank statement for August of 1989. No. 2's August 1989 bank statement merely showed that deposits of $38,906.68 were made that month and that deposits of $17,070.12 were made during the first 3 days of that month, the 3 days about which petitioner's counsel questioned Berry. Nothing in that bank statement served to show the date petitioner received the checks or when the work was performed. Petitioner called Berry as its witness. As petitioner's president and sole shareholder, Berry is the individual who should have personal knowledge as to when work was performed, when payment for such work was received, and when the payment checks were deposited in the bank. He was not asked about these matters in any meaningful way. NeitherPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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