Nick Kikalos and Helen Kikalos - Page 14

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          sale was recorded at the time of purchase.  Therefore, any                  
          subsequent reimbursement received by petitioner for the discounts           
          had no effect on income.                                                    
               Petitioner, however, failed to provide adequate                        
          documentation to show that these procedures were consistently               
          followed.  Petitioner did supply records to corroborate                     
          petitioner’s assertions for 2 days’ worth of sales activity for a           
          single store.  However, during the year at issue Nick’s Liquors             
          operated four locations with aggregate gross receipts from                  
          cigarette sales totaling several million dollars.  Given the                
          volume of cigarette transactions generated by the four Nick’s               
          Liquors stores, the records provided by petitioner are not                  
          sufficient evidence to establish that coupons and buy-downs were            
          consistently and completely recorded in all four stores.7                   
          Petitioner’s testimony that the coupon and buy-down point of sale           
          procedure was consistently followed, by itself, is not sufficient           
          to carry his burden.  Accordingly, we hold that petitioner failed           
          to report coupon and buy-down income of $124,684 for 1997, as               
          determined by respondent.                                                   
          II.  Promotional Income                                                     
               Petitioner reported $16,736 of promotional income for 1997.            
          Respondent determined that petitioner received $69,915 of                   

               7 It is somewhat curious that petitioner was able to provide           
          only 2 days of tapes for a single store.  That is certainly too             
          small a sample to provide insight into the universe we consider.            





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