- 19 -
Citing Richardson v. Commissioner, 264 F.2d 400, 404 (4th
Cir. 1959), revg. in part T.C. Memo. 1957-122, and Perez v.
Commissioner, T.C. Memo. 1974-211, however, petitioner contends
that respondent bears the burden of proving that petitioner did
not incur the band expenses that he now claims. Petitioner
argues that respondent failed to carry this burden because
respondent presented no evidence whatsoever with respect to the
band expenses.
We have no doubt, as indicated by our findings of fact, that
petitioner incurred deductible band expenses during the years in
issue. We conclude, however, that even if we credit petitioner
with the band expenses that he claims, much of which we credit
infra in deciding the correct amount of the deficiency, those
expenses, along with the additional expenses and purchases
conceded by respondent, nonetheless would be insufficient to
offset the unreported gross receipts proved by respondent and
discussed more fully infra.19 We therefore find it unnecessary
19 The following computation demonstrates that petitioner would
have unreported income even if, in addition to the expenses and
purchases conceded by respondent, we credited petitioner with the
full amount of the band expenses he claims:
1987 1988 1989 1990
Unreported gross receipts1$104,917 $116,072 $127,474 $31,369
Less:
Band expenses2 36,300 39,600 32,175 13,200
Band advertising expenses1,596 1,740 1,416 1,596
7-percent New York
State sales tax3 7,344 8,125 8,923 2,195
Additional purchases4 39,228 42,787 48,061 13,620
Total unreported income 20,449 23,820 36,899 758
(continued...)
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