- 26 -
Petitioners also argue that respondent erred in determining
that other unidentified expenses were personal living expenses.
Petitioners have failed to identify the specific instances when
this occurred and have failed to offer any proof that any
additional unidentified expenses determined by respondent to be
personal living expenses were not such. Petitioners have not
proven by a preponderance of evidence that additional adjustments
are warranted to respondent's calculation of their personal
living expenses for the years in issue. Respondent's
determination that unidentified expenses were personal living
expenses will be sustained.
4. JKY Income
Respondent now contends that she understated JKY's total
receipts for 1991 by $36,455 because certain deposits were not
included in the reconciliation of gross receipts. Respondent has
conceded that she understated sales returns/chargebacks in 1991
by $32,039 in her initial determination. The correct amount of
sales returns chargebacks for 1991 is $140,614.37. Respondent
asks us to sustain her original Form 1120S pass-through
adjustment for 1991 even though these computational adjustments
respondent now seeks result in an increased deficiency.
Petitioners contend that respondent has raised a new issue. This
issue involves a new matter because the evidence necessary for
resolution of it differs from that relevant to the original
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011