Aric Manley Allman - Page 8

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          Although petitioner was paid by cash without a receipt, and could           
          not produce documentation to support his testimony, we                      
          nonetheless find his testimony as to the maximum number of days             
          and hours worked to be truthful and accurate.                               
               If the Form 1099-MISC provided to respondent by Mr. McMickle           
          were to be believed, which reported $3,497 of nonemployee                   
          compensation, petitioner would have then worked approximately 280           
          hours during the period at issue.  If true, this would mean that            
          petitioner worked 40 hours a week for 7 weeks.  We calculate that           
          based on petitioner’s credible testimony, that he could have                
          worked no more than 140 hours for Mr. McMickle (35 hours                    
          multiplied by 4 weeks).  We also believe that petitioner took 1             
          week off for Thanksgiving and Christmas each, resulting in a 4-             
          week period of work in 2003.  We find that petitioner worked no             
          more than a 35-hour week with Mr. McMickle for 4 weeks for a                
          total of 140 hours, earning a total of no more than $1,750 (140             
          hours multiplied by the rate of $12.50 per hour).                           
               Respondent did not call Mr. McMickle as a witness in order             
          to rebut any of petitioner’s testimony.  On all of the facts                
          presented, petitioner has persuaded us that respondent’s                    
          determination based on the information provided by Mr. McMickle             
          is erroneous.  Accordingly, we conclude that petitioner failed to           
          report compensation received from Mr. McMickle in the amount of             
          $1,750 for taxable year 2003.                                               






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