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Unusual support or transfers of property to the spouse are
considered even if the benefit is received after the years in issue.
Hayman v. Commissioner, 992 F.2d at 1262; Estate of Krock v.
Commissioner, 93 T.C. 672, 679 (1989); S. Rept. 91-1537 (1970), 1971-1
C.B. 606, 607-608. In about 1986, Mr. Walker used at least $40,000 of
the proceeds from his liquidation of West Jersey's assets and business
to establish another corporation, PSI, whose shares were issued to and
held in the name of Mrs. Walker and their son. Additionally, during
1980, Mr. Walker, by way of a check drawn on his and Mrs. Walker's
joint checking account, paid over $76,000 to Merrill Lynch for an
unexplained purpose.
In their responses to certain interrogatories served upon them by
respondent during pretrial discovery, Mr. and Mrs. Walker denied that
Mr. Walker, during or after the years in issue, made any transfers of
over $-500 to Mrs. Walker or that he had made any gifts of over $500
to her. At trial, these responses of theirs were shown to be untrue.
We are not satisfied that Mr. and Mrs. Walker have disclosed all of
the assets they owned during and after the years in issue. Neither are
we convinced that they have provided full and complete information
with respect to all transfers Mr. Walker may have made to Mrs. Walker
during and after the years in issue. Mrs. Walker has thus failed to
establish that she did not significantly benefit from Mr. Walker's
unreported income. Rule 142(a); Purificato v. Commissioner, 9 F.3d at
294-295.
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