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his income in keeping his books. See sec. 446(a). However, if
the method of accounting or the books do not clearly reflect
income, the Commissioner may compute income through any method
that clearly reflects income. See sec. 446(b); Holland v. United
States, 348 U.S. 121, 132 (1954); Mallette Bros. Constr. Co.,
Inc. v. United States, 695 F.2d 145, 148 (5th Cir. 1983);
Meneguzzo v. Commissioner, 43 T.C. 824 (1965); Zamzam v.
Commissioner, T.C. Memo. 2000-371.
The Commissioner’s reconstruction of income need only be
reasonable; it need not be exact. See Holland v. United States,
supra; Giddio v. Commissioner, 54 T.C. 1530, 1533 (1970);
Schroeder v. Commissioner, 40 T.C. 30, 33 (1963); Diesel Country
Truck Stop, Inc. v. Commissioner, T.C. Memo. 2000-317. The
Commissioner need not concede an adjustment until he has
“received and verified adequate substantiation for the items in
question.” Simpson Fin. Services v. Commissioner, T.C. Memo.
1996-317 (citing Harrison v. Commissioner, 854 F.2d 263, 265 (7th
Cir. 1988), affg. T.C. Memo. 1987-52); see Sokol v. Commissioner,
supra at 765.
Respondent relied on petitioner’s books and records in
computing gross receipts for 1992 through 1994. Respondent
determined in the notice of deficiency for tax years 1992, 1993,
and 1994 that petitioner omitted gross receipts totaling
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