Thai V. Pham and Khuy T. Bui - Page 17

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          years at issue.  Petitioners contend that $9,000 of the $14,000             
          at issue was received in the form of a loan from petitioner Bui's           
          friend, Mr. Tu Van Le, and was intended for working capital                 
          purposes.  Petitioners further contend that the remaining $5,000            
          at issue was received from petitioner Bui's sister and was also             
          intended for working capital purposes.  These alleged loans were            
          not formalized or documented in any fashion; no instrument                  
          evidences their existence.  Petitioners did not call Mr. Tu Van             
          Le or petitioner Bui's sister to testify as to these loans.                 
          Furthermore, their absence was not explained.  We cannot assume             
          that the testimony of absent witnesses would have been favorable            
          to petitioners.  Indeed, the normal inference is that it would              
          have been unfavorable.  Pollack v. Commissioner, 47 T.C. 92, 108            
          (1966), affd. 392 F.2d 409 (5th Cir. 1968).                                 
               Except for petitioner Bui's self-serving testimony,                    
          petitioners have produced no evidence that the two deposits                 
          totaling $14,000 in 1988 constituted nontaxable income.  Hence,             
          petitioners have not overcome the presumption that the two                  
          deposits originate from a taxable source as respondent                      
          determined.  Accordingly, respondent's determination is                     
          Issue 4.  Addition to Tax, Sec. 6653(a)                                     
               Respondent determined that petitioners are liable for an               
          addition to tax under section 6653(a) because the underpayment of           
          income tax for taxable year 1988 was attributable to negligence             

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