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MEMORANDUM FINDINGS OF FACT AND OPINION
CHABOT, Judge: Respondent determined a deficiency in
corporate income tax and an accuracy-related penalty under
section 6662(a)1 (negligence, etc., and substantial
understatement of income tax) against petitioner for the fiscal
year ending June 30, 1990, in the amounts of $337,339 and
$67,468, respectively.
After concessions2 by both sides, the issues for decision
are as follows:
1Unless indicated otherwise, all subtitle and section
references are to subtitles and sections of the Internal Revenue
Code of 1986 as in effect for the year in issue.
2The following table shows petitioner’s reported amounts and
respondent’s adjustments and concessions as to petitioner’s
unreported income from diesel fuel sales:
Gross Cost of Gross
Document Or Statement Receipts Goods Sold Profit
P’s tax return--totals $4,152,428 $3,463,255 $689,173
P’s P & L statement--diesel 3,340,825 2,959,767 381,058
Notice of deficiency--adjustments + 1,548,766 + 670,311 + 878,455
Respondent’s opening statement,
brief--adjustments + 877,765 + 82,692 + 795,073
The parties agree that the adjustments to gross receipts and cost
of goods sold relate solely to petitioner’s diesel fuel activity.
On its tax return, petitioner claimed a $101,517 rent
deduction. In the notice of deficiency, respondent allowed
$5,517 and disallowed $96,000. At trial, respondent conceded
$10,000 of the $96,000 disallowance, increasing to $15,517 the
allowed rent deduction. On its tax return, petitioner claimed a
$29,877 car/truck expenses deduction. In the notice of
deficiency, respondent disallowed the entire amount. On
answering brief, petitioner concedes $14,657 of the claimed
amount.
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