Michael and Penny Rhodes - Page 12

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          reported on the 1994 and 1995 tax returns.  In addition,                    
          respondent pointed out numerous inconsistencies in petitioners’             
          records at trial.  Several times, Ms. Rhodes listed a mileage               
          amount that she claimed was to give a wedding estimate, but there           
          was no location listing where she drove.  At trial, Ms. Rhodes              
          was unable to identify any of these missing locations, nor could            
          she remember the names of people she purportedly met for wedding            
          estimates.  Other times, Ms. Rhodes listed travel to a particular           
          store to buy supplies but could furnish no receipts to support              
          the purchases.  Several transactions, such as supplies trips,               
          were listed twice on her calendar.  Finally, Ms. Rhodes often               
          grossly overestimated the miles she drove to a particular                   
          location.  For instance, she claimed she drove from Garrett to              
          Toledo to give a wedding estimate.  The calendar listed mileage             
          of 542.4; however, the distance between Garrett and Toledo is 133           
          miles; therefore, the round trip distance would be 266 miles.               
          Ms. Rhodes offered no explanation for these inconsistencies.                
               Ms. Rhodes claims she and Mr. Rhodes never purchased new               
          tires, had any repair work done, or paid for oil changes, nor did           
          she have any documentation of her odometer readings for 1994 or             
          1995.  Thus, petitioners failed to present any independent                  
          evidence supporting the mileage claims.  The Court finds that all           
          of Ms. Rhodes’s records relating to mileage reported in support             
          of Keepsake are false based on the absence of records and other             






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