Jerry L. Crabtree - Page 14




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             Crabtree Investments state as follows: “Food income was                  
             determined using $125 per week based on Florida Department               
             of Revenue estimates for a business your size.”  Respondent              
             used this estimate because Crabtree Investments did not                  
             provide any purchase records for the food sold in the bar.               

             Income From Cola, Juice, and Coffee Sales                                
                  Respondent determined that sales of nonalcoholic                    
             beverages, such as cola, juice, and coffee, were $19,435                 
             per year for each of the years at issue.  The notices of                 
             deficiency issued to Crabtree Investments provide the                    
             following explanation:                                                   

                  Coke, Juice and Coffee sales were determined                        
                  using an assumption that one quarter of the                         
                  persons paying cover charges for nights when                        
                  entertainment was provided [Thursday, Friday,                       
                  and Saturday] would pay $1.50 for these items.                      

             Income From Pay Telephone Receipts                                       
                  Respondent determined pay telephone receipts to be $40              
             per week or $2,080 per year for each of the years in issue.              
             The notices of deficiency issued to Crabtree Investments                 
             provide the following explanation:  “Pay telephone income                
             was determined using $40 per week based on Florida                       
             Department of Revenue estimates for a business your size.”               
             The revenue agent used this estimate because petitioners                 






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Last modified: May 25, 2011