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1985, $3,955 in 1986,11 and zero in 1987. In his petition,
petitioner contended that he--
incurred for all years relevant to the Notice, various
and certain deductible business expenses, ordinary and
necessary for the conduct of his businesses, including
businesses involving the ownership of certain real
property, all of which businesses during certain years
incurred both capital and net operating losses which
the Commissioner erroneously disallowed.
Petitioner failed to produce any evidence of his alleged
business expenses. At trial petitioner blamed the lack of
evidence on respondent, contending that respondent had all of
petitioner’s business records and was unwilling to share them
with petitioner.12
Petitioner’s contention lacks merit. The only records of
petitioner that respondent had in his possession and used in
making his determination were petitioner’s bank records that
respondent had obtained from various financial institutions by
summons. The record shows that petitioner had numerous
opportunities to inspect the bank records in respondent’s
possession during the time before and between the two dates of
11On Mar. 1, 1986, IFC lost its corporate charter. The
Schedule C expenses respondent allowed for 1986 are those IFC
incurred from March through December of 1986.
12Specifically, petitioner asserted that the business
records had been in the possession of his former partner, Mr.
Dill, and were at some point “confiscated” by “the IRS.”
According to respondent, any business records held by the
Government relating to Mr. Dill had nothing to do with
petitioner. In fact, petitioner’s lack of business records
necessitated respondent’s use of the bank deposits method.
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