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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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