-11-
In fact, most of the copies of money orders included in the
exhibits show only payees and amounts, with no description of the
associated expenses. Some of the money orders represent expenses
that were almost certainly personal, such as the orders payable
to "Psychology Today" and "New Woman", and the order apparently
payable to "Inside Sports". Other money orders represent credit
card payments, with no information about the underlying charges.
In addition, the payments represented by the copies of money
orders and receipts entered into evidence are de minimis,
relative to the hundreds of thousands of dollars of cash expenses
petitioner urges us to find.
For all these reasons, the copies of money orders and
receipts provide no support for the estimates of petitioner's
income contained in Mr. Sager's report, or for petitioner's
assertion that he paid business expenses in cash.
C. The Bid Sheets and Related Estimates
Mr. Sager also testified about copies of seven 1-page "bid
sheets" that he used in the preparation of his report. Each of
these handwritten sheets--which Mr. Sager obtained from
petitioner--assertedly represents petitioner's estimates of cost
and profit for a plumbing job.
The bid sheets are quite summary and without supporting
documentation. Each of the bid sheets sets forth five broad
categories of expense: "Labor"; "Material"; "Water Heaters";
"Miscellaneous Job Expenses"; and "Travel Expenses". Following
these categories, each sheet has a "Sub-Total" line; a "Profit"
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011