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show fraud for the year 1982 because: (a) Respondent cannot show
an understatement of tax for the year;15 and (b) if there is an
understatement of tax, respondent cannot show that it is due to
petitioner's fraud.
Of the $101,838 total cash expenditures ascribed to him in
1982, petitioner argues that $57,981 was from sources reported on
his return, leaving respondent with $43,857 of "excess"
expenditures to treat as unreported income.16 He relies on the
filing of the Savage return in 1983 to explain the source of
these funds. Petitioner argues that the "correct" analysis
requires that the amounts reported on Savage's return be
"removed" from respondent's cash expenditures analysis for 1982.
Petitioner then would have nontaxable sources in excess of cash
expenditures. Respondent can prove that petitioner understated
his income in 1982, "only if respondent can persuade this Court
that petitioner, and not Savages [sic] or even Entertainment &
Amusement, Inc., should have reported the cash", contends
petitioner.
15Although this argument is raised in the "Relevant Facts"
portion of petitioner's motion rather than that part denominated
"Law and Argument", we shall, nevertheless, treat it as if it
were legal argument.
16The cash expenditures respondent computed for petitioner
include the deposits to the Killeen and Medina accounts and cash
expenditures for money orders which were reported on Savage's FYE
9/30/82 return.
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