Kenneth Frank Diller - Page 12




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          challenging the existence of his KD Fabricating business.  Yet,             
          he produced no receipts or any other evidence, other than his own           
          testimony, of any customer payments to KD Fabricating.  The Court           
          is not required to accept petitioner’s self-serving testimony,              
          particularly in the absence of corroborating evidence.  See                 
          Geiger v. Commissioner, 440 F.2d 688, 689 (9th Cir. 1971), affg.            
          per curiam T.C. Memo. 1969-159; Urban Redev. Corp. v.                       
          Commissioner, 294 F.2d 328, 332 (4th Cir. 1961), affg. 34 T.C.              
          845 (1960).  The Court concludes that petitioner has not shown              
          that he was engaged in an activity for profit under the name KD             
          Fabricating in 2002.                                                        
               Taxpayers are required to maintain records that are                    
          sufficient to enable the Commissioner to determine the correct              
          tax liability.  See sec. 6001; sec. 1.6001-1(a), Income Tax Regs.           
          Petitioner’s “substantiation” for claimed business expenses                 
          consists of computer-generated listings of expenses entitled                
          “cash supplies”, “credit card expenses”, and  “check schedule”.             
          Petitioner produced no original documents or copies of such items           
          as receipts, credit card records, bank statements, or canceled              
          checks, on which his computer records were supposedly based.                
          Petitioner’s cash expenditures as listed on his “cash supplies              
          document” totaled $31,468.49.  Included in both the cash and                
          check expenses was the purchase of a new Toyota pickup truck for            
          $23,514.                                                                    







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