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In his farming business, petitioner received gross receipts
from the sale of milk, livestock, corn, and shelled corn. The
evidence, including copies of canceled checks, settlement sheets,
receipts, invoices, and the testimony from petitioner’s criminal
proceeding, clearly and convincingly establishes that petitioner
failed to report gross income from his farming business.
We adjust respondent’s calculation of petitioner’s total
unreported farming income with respect to the bartering income he
received from Fred Hoover. Respondent determined that petitioner
received bartering income of $5,569.32 in 1990, $7,598.75 in
1991, and $4,743.32 in 1992. The records of Fred Hoover reflect
that in 1991 he issued a $5,569 check to petitioner for the
excess of goods and services attributable to 1990. Because
petitioner received the check for $5,569 in 1991, petitioner
failed to report this income in 1991, not in 1990 as respondent
argues. See secs. 446(c), 451(a). These records also show that
in 1992 Fred Hoover issued a $7,598.75 check to petitioner for
the excess of goods and services attributable to 1991.
Petitioner failed to report this $7,598.75 in 1992, the year in
which he received this payment. In 1993, Fred Hoover issued a
$4,743.32 check to petitioner for the excess of goods and
services attributable to 1992. Because petitioner received the
check relating to the 1992 bartering income in the 1993 taxable
year, we find that the bartering income of $4,743.32 is not
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