Eugene Clark - Page 8

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          correct amount of his gross receipts should be $34,578.6                    
               In petitioner’s brief, he contends that the issue of the               
          possible overstatement of income first arose during the audit               
          conducted by the Internal Revenue Service (IRS) revenue agent.              
          Petitioner claims that during the audit the revenue agent may               
          have opined that petitioner overstated his gross receipts.  In              
          petitioner’s brief he further stated:  “each of these issues,               
          i.e., travel mileage, car and truck expenses, depreciation,                 
          deductions allowed after Petitioner filed a Schedule A 1040 Form            
          with the Auditor at the Auditor’s request, configuration of                 
          various exemptions, and so forth, were resolved with the IRS                
          Auditor.”  Petitioner contends that “these issues are not before            
          the Court.”  Despite petitioner’s belief that “these issues are             
          not before the Court”, no settlement was reached administratively           
          with the Commissioner, a notice of deficiency was issued, and               
          petitioner timely filed a petition for redetermination of his               
          1996 Federal income taxes.                                                  
               Gross income includes all income from whatever source                  
          derived.  Sec. 61(a).  Section 61(a)(2) specifically includes               
          income derived from business.  It is required under Federal law             
          that taxpayers maintain adequate and accurate tax records.  Sec.            
          6001; see also Jones v. Commissioner, 903 F.2d 1301, 1303 (10th             

          6    This amount is rounded to the nearest dollar.                          

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