David W. Hill - Page 17

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          affidavit.  In that affidavit, petitioner declared that he                  
          received cash payments totaling $399,435.50 from Mr. Hall.  The             
          affidavit does not mention any payments made "through" Mr. Hall             
          to some unknown third parties, as petitioner now contends.                  
          Furthermore, the record contains no documentation or other                  
          corroborating evidence regarding these alleged expenses.                    
               Moreover, petitioner does not explain how these expenses               
          related to the income he received from Mr. Hall.  Petitioner                
          testified that the work he performed for Mr. Hall included the              
          estimation and preparation of bids.8  We find it implausible that           
          the nature of this work would require petitioner to share                   
          expenses with Mr. Hall or to make capital expenditures for                  
          vehicles and equipment.                                                     
               Petitioner contends that he "felt uncomfortable" estimating            
          his income on his Federal income tax returns because, in his                
          view, "falsely representing the amount of such income was worse             
          than making no representation at all."  However, in order to                
          extend the time to file his Federal income tax returns,                     
          petitioner filed a Form 4868 in each of the years in issue in               

               8On direct examination regarding the nature of the payments            
          he received from Mr. Hall, petitioner testified as follows:                 

               A.   I did estimating type work, helping him prepare his               
               Q.   Helping him prepare what things?                                  
               A.   His bids and prices of what he needed to do.                      

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Last modified: May 25, 2011