Mary Ann and Wilson R. Collins - Page 7

                                                 - 7 -                                                   
                  example, and the amount of 20 cents, due to misplacement of                            
                  the decimal, and some of the tapes had substantial                                     
                        The Respondent spoke to the Petitioner on the telephone                          
                  yesterday afternoon * * * and conveyed to her these                                    
                  conclusions * * * that Respondent would not concede reported                           
                  gross receipts amounts for 1989 and 1990.                                              
                        At the time the parties spoke, Petitioner did not know                           
                  whether she would come to Court or not.  In any event, the                             
                  Respondent has no questions for Petitioner.                                            

                  The Court, however, would have been interested in hearing                              
            petitioner's testimony regarding these sales tickets and to                                  
            explain or address the problems pointed out by counsel for                                   
            respondent.  Petitioner produced no accounting records that would                            
            corroborate the sales tickets.  The tickets alone do not have                                
            that much significance to the Court without testimony explaining                             
            petitioner's accounting methodology and, in particular,                                      
            addressing the apparent flaws suggested by respondent's counsel.                             
            The gross receipts reported on the tax returns are admissions by                             
            petitioners, and we generally do not permit the substitution of                              
            lower values in the absence of cogent proof.  See Estate of Hall                             
            v. Commissioner, 92 T.C. 312, 337-338 (1989).  On this record,                               
            the Court holds that petitioners failed to sustain their burden                              
            of proof on this issue.  Respondent, therefore, is sustained.                                
                  The second issue is whether petitioners are entitled to a                              
            child care credit for the years 1989, 1990, and 1991.                                        
            Petitioners claimed a credit of $960 for each of these years for                             
            two dependent children.  Respondent disallowed the credit for                                

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