Rilwan Adisa Salami - Page 4

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               Petitioner introduced a printout from a friend's taximeter             
          that he contends shows his method of calculating his gross                  
          receipts.  Petitioner, however, failed to present any like                  
          printouts from the taximeters of his own taxicabs.  We find that            
          petitioner failed to maintain adequate records of his gross                 
          receipts for 1992 and 1993.                                                 
               Since petitioner failed to maintain records that clearly               
          reflected his income, respondent's revenue agent, Tony Savage,              
          reconstructed petitioner's gross receipts for 1992 and 1993                 
          through a method called the "cab formula".  Mr. Savage works in             
          respondent's market specialization program that deals with the              
          transportation industry (including taxicab drivers) and has used            
          the cab formula on numerous occasions with other taxicab drivers.           
               As explained by Mr. Savage, the cab formula reconstructs               
          income by taking into account the claimed gas expenses, price per           
          gallon of gas, miles per gallon of the vehicle(s) used, occupancy           
          rate of the vehicle, number of customers and trips per day,                 
          number of days worked per year, and amounts charged for both                
          entry and per mile fares.  Mr. Savage testified that he relied in           
          part on petitioner's statements during the audit, but necessarily           
          estimated some factors through the use of similar information               
          from other taxicab drivers who, unlike petitioner, had provided             
          him with records.                                                           
               Mr. Savage testified that he used conservative numbers in              
          reconstructing petitioner's gross receipts.  In particular, he              

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