A.J. Concrete Pumping, Inc. - Page 10




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          an attempt to show omissions and errors in respondent’s                     
          reconstruction for 1993.  In that regard, the Commissioner’s                
          income reconstructions are subject to taxpayers’ showing                    
          computation errors and omissions and/or errors in the                       
          Commissioner’s methodology.  See Webb v. Commissioner, 394 F.2d             
          366, 372-373 (5th Cir. 1968), affg. T.C. Memo. 1966-81.                     
          Petitioner’s reconciliation, in great part, depends upon                    
          nontaxable loan receipts in a total amount exceeding $466,000,              
          along with other nontaxable items that petitioner subtracted from           
          total deposits to arrive at reportable income.  Respondent has              
          not countered petitioner’s showing of nontaxable items that would           
          reduce the total bank deposits to arrive at reportable income for           
          the 1993 year.                                                              
               Accordingly, petitioner has shown that respondent’s approach           
          to reconstructing its 1993 gross receipts is flawed.  We are                
          unable to draw any conclusion, as respondent apparently wishes us           
          to do, from the fact that we have found that petitioner                     
          understated 1992 income.  That is so because respondent’s                   
          approach for 1992 was to identify specific items of omitted                 
          income.  Accordingly, we find that petitioner did not understate            
          its 1993 income by $74,046 as determined by respondent.                     











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