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above. Petitioner agreed to respondent's determination of
unreported gross receipts but contended at trial that the bank
deposits method utilized by respondent failed to include
adjustments for the following:
(1) $325 paid to the funeral home during 1995 that
represented reimbursement of amounts paid by the funeral home to
a cemetery for the burial of a former employee of the funeral
home during 1993;
(2) Certain deposits made to the funeral home's bank account
during 1995 that represented payments by friends of petitioner
who, along with petitioner, went on a vacation cruise; and
(3) Certain intra-account transfers of approximately $40,000
between the checking and savings accounts of the funeral home
during 1996 that were not adjusted by respondent (and thus were
counted twice).
On this record, the Court agrees with petitioner that the
unreported gross receipts for 1995 should be reduced by $325.
The Court is satisfied from petitioner's testimony that the $325
represented reimbursement for an amount paid by petitioner during
1993 for which petitioner did not claim a deduction for Federal
income tax purposes. At trial, respondent conceded, in
connection with petitioner's second argument above, that
petitioner was entitled to a reduction of $3,080 in the
determined gross receipts for 1995. As to petitioner's third
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