- 11 -
the client who was being billed. The invoices requested that
payment be remitted to petitioners' home address.
Ms. Olbres maintained invoice logs (invoice logs) in which
she kept track of the invoices that Design Consultants and/or
White Star sent to their clients and the amounts that those
clients paid on those invoices. Design Consultants and/or White
Star did not send invoices to Greyhound and/or Mayflower,8 and,
consequently, commissions received from those businesses were not
recorded in the invoice logs.9 Ms. Olbres brought copies of
portions of the invoice logs to petitioners' house. She periodi-
cally destroyed those copies.
Petitioners opened the Indian Head business savings account
around 1983. They deposited certain of Design Consultants'
and/or White Star's receipts into that account, and Ms. Olbres
recorded those deposits in a bank passbook for that account. Ms.
8 The record is not clear about whether Design Consultants
and/or White Star sent invoices to other businesses that provided
auxiliary services to the clients of Design Consultants and/or
White Star.
9 The parties stipulated that all of the deposits made into the
Indian Head business savings account were recorded not only in a
bank passbook for that account, but also in the invoice logs.
That stipulation insofar as it relates to the invoice logs is
contrary to the record in this case. That record shows, and we
have found, that Design Consultants and/or White Star did not
send invoices to Greyhound and/or Mayflower and that commissions
that were paid to Design Consultants and/or White Star by those
businesses were not recorded in the invoice logs. We may, and we
shall in this instance, disregard stipulations between the
parties where the stipulations are clearly contrary to facts
established by the record. See Cal-Maine Foods, Inc. v. Commis-
sioner, 93 T.C. at 195.
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