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6. Joseph’s Defense
Joseph claims that he once possessed computer sheets that
would demonstrate how he mistakenly understated both his gross
receipts and expenses. He contends that such computer sheets are
among the records obtained by respondent’s agent pursuant to the
administrative summons. He further contends that he did not
receive back from respondent many of those records, including the
computer sheets he needs to defend himself.
In fact, such computer sheets are the only document Joseph
has identified as missing. He does not contend that he needs the
computer sheets to calculate his gross income and deductions, but
rather, that they would serve as proof that he had a reasonable,
albeit erroneous, basis for the gross receipts and cost of goods
sold he reported on the Schedules C. Joseph did not offer any
testimony as to the creation or maintenance of those computer
sheets, nor did he produce any witnesses to authenticate their
existence. Indeed, he did not explain (1) what information the
computer sheets would contain that differed from that appearing
on the peg board, (2) the purpose for also running adding machine
tapes against the peg board, nor (3) why he would have gone to
the effort of maintaining two bookkeeping systems–-a manual peg
board system and an automated computer system. We do not believe
that the claimed computer sheets ever existed.
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