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served in those positions 6 or 7 years. In her capacity as an
officer, Mrs. Zeidler was familiar with the operational and
financial aspects of the organization. For all of the
performances, the organization sold tickets, and proceeds were
used to defray the expenses of putting on the performances. Any
excess monies were carried over to assist in defraying the
expenses of subsequent performances, which included the purchase
of music, supplies, robes, tuxedos, and dresses for the chorale
performances. Financial records of the organization were
submitted into evidence from five performances during the years
in question. For the five performances, the organization had
gross receipts of $10,872.84 and expenses of $9,101.88. The
expenses, which were itemized, do not indicate that the
organization's funds were used for the benefit of any private
individual, and the Court so finds. The sources of funds to the
organization were identified as "ticket receipts", "patron
money", and "door sales". The distinctions between these
categories of receipts were not explained at trial. At no time
during its existence did the organization's gross receipts in any
given year exceed $5,000.
With respect to this issue, and all other issues in these
cases, certain general rules are applicable, one of which is that
respondent's determinations in a notice of deficiency are
presumed correct, and the taxpayer bears the burden of proving
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