Michael J. Downing and Sandra M. Downing - Page 51

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          as to business expenditures made by check and business                      
          expenditures made by credit card.                                           
               Respondent’s numbers on these two items are the numbers that           
          the parties stipulated.  Petitioners’ numbers are contrary to the           
          stipulations.  The stipulations are binding, unless the parties             
          agree otherwise or the Court relieves a party from the binding              
          effect “where justice requires.”  Rule 91(e).  Petitioners have             
          not asked to be relieved from these stipulation, and nothing has            
          been brought to the Court’s attention that leads us to conclude             
          that justice so requires.  Elec. Arts, Inc. v. Commissioner, 118            
          T.C. 226, 253 (2002).                                                       
               We hold that respondent has established by clear and                   
          convincing evidence the correctness of the 1994 adjustment (supra           
          table 7) on account of business expenditures made by cash.                  
               (b) 1995.--Respondent contends petitioners made $4,136                 
          business expenditures in cash in 1995.27  Petitioners contend on            
          answering brief the correct amount is zero.  Both sides calculate           
          the cash expenditures by starting with “total expenditures                  
          reported” of $80,615.  Both sides subtract from this amount,                
          $4,600 telephone expenses and $1,250 insurance expenses.                    


               27  Respondent’s contention on brief was $5,534.  However,             
          in the postbriefs proceedings (supra note 24) respondent conceded           
          that three checks for Ford F250 truck payments (total $1,200) and           
          one check for truck insurance ($198) should be added to the                 
          stipulated business expenditures made by check.  This concession            
          reduces pro tanto respondent’s contention as to cash business               
          expenditures.                                                               





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