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the record contains a garment manufacturing license fee invoice
from the County of Los Angeles for $323.75. The invoice recites
that unless payment is received before December 15, 1996, legal
proceedings will be instituted. Handwritten on the invoice is
“pagado con check”, which Mr. Mendez testified he wrote to
signify that the fee was paid by check. Given this notation and
the logical appeal of Mr. Mendez’s testimony that the business
would not have been able to continue without the license, we are
satisfied that EJX did in fact remit the referenced fee in 1996.
Petitioners are entitled to a deduction for licenses in the
amount of $323.75.
F. Advertising
Petitioners’ Schedule C reflects a deduction for advertising
of $1,329, all of which was disallowed by respondent. The sole
item in the record which would appear to be traceable to an
advertising expenditure is an invoice from Rick Swinger
Photography for “studio fashion photography with model and 6
roles color film shot”. The balance due is shown as $950.
Nonetheless, there are again two barriers to permitting a
deduction based upon this document. First, as with many of the
invoices previously mentioned, the record is barren of any
evidence of actual payment. Not even a notation on the bill
exists to give rise to an inference in petitioners’ favor.
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