- 19 -
been received by Tarrant Bank from the sale of inventory
owned by Motion, Inc. The original petition filed by
Colonial Bank in State court cannot reasonably be read to
suggest that any of the funds at issue in that case had
been obtained by petitioner through a loan from Colonial
Bank.
Finally, the default judgment issued by the State
court deemed perfected Colonial Bank's security interest
in the inventory, accounts, and rights to payment owned by
Motion, Inc., and it rendered a default judgment against
petitioner and Motion, Inc., in the amount of Colonial
Bank's loss. However, the default judgment does not
constitute an adjudication that petitioner had obtained the
funds from Colonial Bank through a bona fide indebtedness.
The second issue in this case involves respondent's
determination that petitioners are liable for the addition
to tax under section 6651(a) for failing to file a timely
return. Petitioners bear the burden of disproving
respondent's determination. E.g., Reily v. Commissioner,
53 T.C. 8, 14 (1969).
Petitioners failed to introduce any testimony or other
evidence concerning this issue at trial, and they did not
raise the issue in their post-trial briefs. Therefore, we
find that petitioners, if they have not conceded the issue,
have failed to meet their burden of proof, and we sustain
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