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the fuel pump computer tapes. Hart testified that Steve told him
that he destroyed the fuel pump computer tapes after the
information was copied onto the DSR’s; the one fuel pump computer
tape Hart examined was from the day immediately before the date
that Hart asked for the fuel pump computer tape. In this clash
of testimonies, we believe Bedevian and Hart. In any event, we
do not have the fuel pump computer tapes that could have been
used in auditing petitioner’s fiscal 1990 tax return. As we have
noted, the DSR’s that we have do not match the MIR’s that we
have, as to diesel fuel gallons sold. The DSR’s figures as to
receipts from diesel fuel sales imply prices significantly less
than the Lundberg Survey shows as retail diesel fuel prices in
that part of the country at that time of year.7 We conclude that
the evidence of record as to petitioner’s DSR’s supports
respondent’s determination to reconstruct petitioner’s diesel
fuel sales income.
Respondent’s determination that petitioner omitted gross
income from its diesel fuel retail activity is the consequence of
respondent’s determination that petitioner underreported both its
receipts from, and its cost of goods sold for, this activity.
Respondent takes the position that the receipts underreporting
far exceeds the cost underrporting--this excess is the measure of
7Compare supra table 3 with infra table 7.
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