- 11 -
such WA is the notation “Paid Out to Jerry Payne”. Another WA
contains the notation “Draw - Jerry’s Vitamins - Sugar”. On some
of the WAs for 1989 (either guest check forms or blank pieces of
paper), petitioner noted that he “took” the stated amount of
money from a “safe” or a “bag” or “stack”, or that he just “took”
the stated amount. On other of the 1989 WAs (guest check forms
only), the authorized amount was for specific items of food.
Some of the WAs refer to a particular server or other person.
Also, one WA, which is largely illegible, appears to be a note to
someone named Vikki that petitioner “spent” $350 for some
indecipherable purpose.
Schedule C Deductions
Parking
On line 28 of his Schedule Cs for the audit years (“Other
expenses”), petitioner listed “parking” expenses of $1,443 for
1989 and $1,492 for 1990.
Bad Debts
During 1989, petitioner paid $34,443 to Texas Commerce Bank
(TCB), of which $19,921, represented deductible interest. During
1990, petitioner paid $13,644 to TCB. On line 9 of his Schedule
Cs for the audit years (“Bad debts from sales or services”),
petitioner treated $14,000 (for 1989) and $8,000 (for 1990) of
such payments to TCB as giving rise to bad debt deductions.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011