Stephen & Dawn Del Monico - Page 8

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          income from New Dimensions in 1999.  Petitioner testified that              
          he just assumed that the amounts reported on the Form W-2 were              
          correct and said that he “didn’t really scrutinize [it] more                
          than taking a glance at it and giving it to my accountant.”  We             
          think that a reasonable and prudent taxpayer in these                       
          circumstances would have noticed the discrepancy between the                
          amount of income he earned and the amount reported on the Form              
          W-2, and at least would have contacted New Dimensions to verify             
          the accuracy of the company’s information return.  The                      
          difference between the amount on the Form W-2 and petitioner’s              
          actual receipts during 1999 was so great, and such a high                   
          proportion of his total income, that we consider his explanation            
          entirely unbelievable.  Consequently, it is our view that,                  
          without a satisfactory reason, petitioner reported on his                   
          Federal income tax return for 1999 far less income than he                  
          received during the year.                                                   
               At trial, petitioner acknowledged receiving compensation               
          throughout the disputed pay period.  However, he claimed that               
          the amount he actually earned and received was far less than                
          $12,396.                                                                    
               Respondent produced copies of 15 relevant paychecks from               
          the disputed pay period in support of the Form 1099, but                    
          respondent acknowledges that at least three checks are missing              
          from the record.  In sum, the 15 paychecks total $11,336.60, but            






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