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2. Cash Payments
Respondent included in the gross receipts of Beck's Liquors
items identified as cash payments totaling $85,164 in 1991,
$101,305 in 1992, and $75,487 in 1993. Petitioners dispute that
these items were gross receipts of Beck's Liquors.
a. Cash From Till
Employees of Beck's Liquors often cashed their paychecks at
the store and occasionally used cash from the till to pay for
some minor store expenses; most store expenses were paid by
check. The paychecks written on the corporate account were not
included with the daily bank deposits. Because Mr. Beck used the
deposits to calculate gross receipts, the cash used to cash the
checks and pay the expenses was omitted from the computation of
gross receipts. Paychecks were cashed from the till in the
amounts of $14,118 in 1991, $18,002 in 1992, and $2,382 in 1993.
Expenses were paid from cash taken from the till in the amounts
of $138 in 1991, $3,632 in 1992, and $1,709 in 1993. Beck's
Liquors underreported its gross receipts in those amounts in the
years at issue.
b. Gambling Losses
On the basis of reports from two casinos, respondent asserts
that Mr. Beck used corporate cash to pay for gambling losses in
1991 and 1992. Records from the Mirage casino indicate that Mr.
Beck lost $1,000 in 1991. Records from the Riviera casino show
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