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in the amount of $165, was dated January 13, 1997. Respondent
determined that petitioner failed to include those checks
totaling $1,059 in gross receipts. Petitioner did not provide
respondent records to substantiate that these payments were
properly included in income.
Before their 1997 tax year, petitioners were notified on
several occasions that their records were inadequate. In the
case of Kikalos v. Commissioner, T.C. Memo. 1998-92, revd. in
part 190 F.3d 791 (7th Cir. 1999), this Court found that
petitioner’s records with respect to Nick’s Liquors were
inadequate for 1990, 1991, and 1992. In that opinion it was
noted that petitioner had been advised to retain adequate records
before his 1990 and 1991 tax years. Further, on June 9, 1995,
petitioner entered into a records retention agreement with the
Internal Revenue Service agreeing that he would maintain certain
records. Petitioner did not adequately comply with his June 9,
1995, agreement.
OPINION
We consider here whether petitioner has shown that
respondent’s determination is in error. Respondent determined
that petitioner failed to report business income from several
sources. In spite of numerous warnings, petitioner did not
maintain adequate records for 1997. Petitioner knowingly
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