Adell Maxie, Jr. - Page 4




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                    petitioner reported gross receipts of $45,297.  For the year at                                                                                        
                    issue, petitioner’s reported combined gross receipts from both                                                                                         
                    businesses totaled $98,788.  Using the bank deposits method,                                                                                           
                    respondent determined petitioner’s combined gross receipts to be                                                                                       
                    $108,151.  Thus, respondent determined that petitioner failed to                                                                                       
                    report $9,363 of gross receipts from petitioner’s two Schedule C                                                                                       
                    businesses.                                                                                                                                            
                              On the barber shop Schedule C, petitioner claimed various                                                                                    
                    business expense deductions that are at issue.  Petitioner                                                                                             
                    deducted $2,072 of travel expenses on the barber shop Schedule C,                                                                                      
                    of which respondent allowed only $1,290.  Thus, $782 of travel                                                                                         
                    expenses remains at issue.  It has been stipulated that $689.17                                                                                        
                    of the travel expenses at issue related to expenses incurred with                                                                                      
                    respect to a fraternity convention petitioner attended in                                                                                              
                    Washington, D.C.  The record is void of any evidence to establish                                                                                      
                    what the remaining $92.83 of the disputed travel expenses                                                                                              
                    represents.                                                                                                                                            
                              Petitioner claimed a business expense deduction on the                                                                                       
                    barber shop Schedule C of $421 for meal and entertainment                                                                                              
                    expenses.  Respondent allowed $361 of the total claimed                                                                                                
                    deduction.  Thus, $60 of the claimed meal and entertainment                                                                                            
                    expense deduction remains at issue.  It was stipulated that the                                                                                        
                    $60 deduction relates to meals purchased while attending the                                                                                           
                    fraternity convention.                                                                                                                                 





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