Dak, Inc. - Page 19

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          tape 2.  As noted supra, the purpose of Mr. Kelson’s                        
          reconciliations was to assure that, in determining net sales, no            
          bar sales were duplicated on the dining room cash register tapes.           
          Ms. Groom clearly demonstrated that no double-ups were included             
          in her summaries (Exhibits 3-J through 13-J) in which she                   
          determined petitioner’s income for the taxable year ended May 31,           
               Petitioner did not call Mr. Kelson as a witness.  He was               
          petitioner’s accountant and bookkeeper who prepared the daily               
          cash register tape 2 (the bar) reconciliation that assured there            
          would be no double-ups on cash register tape 1 (the dining room).           
          Under Wichita Terminal Elevator Co. v. Commissioner, 6 T.C. 1158,           
          1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947), we infer that             
          Mr. Kelson’s testimony, if offered at trial, would have clearly             
          disproved petitioner’s “double-ups” theory.                                 
               Petitioner’s “double-ups” theory is patently bogus, and we             
          reject it.                                                                  
               Respondent determined that petitioner is liable for an                 
          accuracy-related penalty of $6,089.40 for failure to report                 
          income in the amount of $120,371.                                           
               Section 6662(a) imposes a 20-percent penalty on the portion            
          of an underpayment attributable to any one of various factors,              
          one of which is negligence or disregard of rules or regulations.            
          Sec. 6662(b)(1).  “Negligence” includes any failure to make a               

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