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Showing of a Genuine Issue of Material Fact
The underpayment element of fraud
In its present state, the record shows that petitioner used
$82,477 in cash to purchase 232 money orders in 1982. In
addition, the parties have stipulated to certain cash
expenditures for personal items by petitioner and his deposits of
currency to accounts he controlled during 1982. Petitioner has
admitted by way of stipulation that he wrote no checks to cash in
1982, got no cash back from deposits in 1982, and was paid only
$11,110 in cash (as a loan) by E & A of Illinois in 1982. An
examination of his individual tax return for the year reveals no
apparent source of cash receipts. Thus, petitioner has
unexplained currency expenditures for the year 1982 and the
record in its present state is devoid of any evidence of
nontaxable sources of cash except for the above noted loan.
The record suggests that the amount by which petitioner's cash
expenditures21 exceed his known sources of income for 1982 is
taxable income. See Meier v. Commissioner, 91 T.C. 273 (1988);
20(...continued)
argue that stipulations do not fall into the category of
"pleadings, answers to interrogatories, depositions, admissions,
and any other acceptable materials", Rule 121(b). Under our
Rules "A stipulation shall be treated * * * as a conclusive
admission by the parties to the stipulation", Rule 91(e),
emphasis supplied. See, e.g., Noneman v. Commissioner, T.C.
Memo. 1978-283.
21Cash bank deposits are another form of cash expenditure.
Meier v. Commissioner, 91 T.C. 273, 295 n.28 (1988).
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