Nick Kikalos and Helen Kikalos v. United States

POSNER, Circuit Judge.

The plaintiffs brought suit for a refund of federal income taxes, had a jury trial that resulted in a verdict for the government, and appeal, complaining about the jury instructions and the exclusion of much of their evidence.

The plaintiffs, husband and wife, own three retail stores in Hammond, Indiana. The stores operate under the name “Nick’s Liquor” but sell cigarettes,' beer, wine, soft drinks, potato chips, and other snack food as well as hard liquor. Most sales are cash sales; the stores do not accept credit cards. Nick Kikalos, the husband, does the bookkeeping.…