SULLIVAN v. COMMISSIONER
43 T.C.M. 880 (1982)
United States Tax Court.
Filed March 24, 1982.
Petitioner has substantiated to our satisfaction, by his testimony and sufficient documentary evidence and records, promotional expenses in the total amounts of $1,981.05 for 1976 and $482.56 for 1977. For the most part the corroborating evidence consists of cash receipts and cash register tapes reflecting purchases of beer. Therefore, we hold that the petitioner is entitled to the amounts substantiated.Section 6653(a) Additions to Tax
We sustain respondent's determination with respect to the additions to tax under section 6653(a) for negligence because the petitioners have offered no evidence on this issue, and therefore they have failed to carry their burden of proof.
To reflect the concessions made by the petitioner and our conclusions on the disputed issues,
Decision will be entered under Rule 155.
1. All section references are to the Internal Revenue Code of 1954, as amended and in effect during the years in issue, unless otherwise indicated.
2. Petitioner conceded that his casualty loss for 1976 was $436 rather than $600 claimed on his return. He also conceded that his mileage expense for his pickup truck was no more than $3,750 in 1976 and $1,020 in 1977 instead of the amounts of $4,350 and $3,050, respectively, which were claimed on his income tax return.
3. We find it strange and inconsistent that respondent accepted petitioner's receipts for advertising and promotion expenses and allowed only one-half of the total as deductible business expenses but disallowed the remainder on the ground that they do not qualify as ordinary and necessary business expenses.
4. Petitioner's points are succinctly stated in his brief as follows:
When I first opened my station business was very slow, as usual with a new business. Next I started using S&H Green Stamps to boost my sales. The majority of oil field workers (my customers) were single men who didn't have much time for licking stamps. I began giving beer. I know from past experience that "oilers" much rather drink ice cold beer than lick stamps after a long hot day in the oil fields. * * * If I were to continue with Green Stamps I would have never increased by business. In 1977 my business was really strong until I got sick and had to sell out. I still feel good about it and I still have every receipt from every beer purchase as well as every Green Stamp purchase I ever made.
Sir, I really don't feel in my heart how a small business man can be put down because he had an idea and made it work. * * *
The force and truth of these statements are self-evident. We have no doubt that an oil worker, after a long, hard day in the field, would much prefer to stop by Sully's Service Station for gas and a cold beer rather than go home licking S&H Green Stamps. Unlike the complex rule in Shelley's case — that nemesis of all first year law students of real property — the rule in Sulley's case is simply that a small businessman who wants to obtain customers and sell more of his products can offer free beer to beer lovers. Stated differently, in exchange for purchasing gas, oil and other services, Sully said to his customers "This Bud's for you."