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were charged $80 per occurrence for false alarms on February 1,1
May 12, June 28, and August 28, 1996. The record also contains
delinquent status notices dated November 5 and December 3, 1996,
concerning the May and the August alarms, respectively. The
bills and notices warn that operating an alarm system without a
permit is a misdemeanor. Thus, additional impediments beyond
section 162(f) are present on these facts. The delinquency
notices call into question whether at least some of the charges
were paid in 1996, so as to be deductible by a cash basis
enterprise in that year.
Second, petitioners provided a “Garment Penalty Assessment
Order” from the State of California Department of Industrial
Relations, Division of Labor Standards Enforcement, for a
violation of section 2678 of the California Labor Code. Cal.
Lab. Code sec. 2678 (West 1989 & Supp. 2001). The assessment was
issued on October 2, 1996, and the stated grounds involve a
failure to maintain accurate records. However, the evidence also
includes a letter from the agency dated April 18, 1997, stating
that the penalty had not been paid as of that date. Petitioners
therefore are entitled to no deduction in 1996.
1 Although the pertinent stipulation references Feb. 2,
1996, as the date of the alarm, the bill specifies an alarm date
of “02/01/96”. The minor discrepancy is immaterial for our
purposes.
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