David M. Priestly, Jr. - Page 11

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               Instead of attempting to substantiate the disallowed                   
          deductions through third-party or duplicate records (e.g.,                  
          statements from banks, credit card companies, local property tax            
          records, etc.), petitioner produced various documents that he               
          claims remained in his possession after the search.  These                  
          documents include an unsigned blank check and deposit slip from a           
          “business account”, illegible copies of credit card receipts,               
          automobile repair bills, several bank statements for a joint                
          checking account, a notice advising petitioner and his spouse               
          that their automobile insurance had expired and another notice              
          indicating that the insurance had been reinstated, a notice that            
          petitioner’s real estate taxes for 1991 and 1992 were delinquent,           
          a bill for a newspaper classified advertisement, a deed, a copy             
          of a check made payable to Fleet Funding Assumption Department              
          which appears not to have been negotiated, copies of mortgage               
          statements, and copies of utility bills.  When describing these             
          documents at trial, petitioner acknowledged that some of them had           
          nothing to do with deductions claimed on his 1988 return.  Only             
          some of the documents introduced into evidence by petitioner                
          relate to 1988.  According to petitioner, these documents were              
          not seized along with his other records for that year because the           
          agents conducting the search “missed” them.  Furthermore, to the            
          extent a document seems to relate to a deduction claimed by                 
          petitioner, it is equally plausible that the document relates to            






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