Eddie M. and Cynthia L. Chandler - Page 9

                                   - NEXTRECORD  -                                    
               CD purchased                                       10,418              
               CD purchased                                       10,804              
               Expenses paid by cash                               3,450              
               Credit union acct #11957 (balance on 12/31/90)      6,771              
               Credit union share acct #11957 (bal. on 12/31/90)    1162              
               Credit union share acct #11246 (bal. on 12/31/90)     310              
               Credit union acct #11246 (balance on 1/1/90)          668              
               Expenses paid by check                             24,966              
                    less: Expenses paid by cash                  (10,268)             
               Cash on drug busts                                 20,000              
               Total expenditures                                 72,661              
          Understatement of Income                                                    
               Total expenditures                                $72,661              
               less: total funds available                       -57,425              
               Understatement of income                           15,236              


               1The record does not disclose why this account may have been           
               omitted in the reconstruction of petitioners' income for 1989.         


                                       OPINION                                        
          Matters Related to the Burden of Proof                                      
               Income from an illegal activity                                        
               In general, the Commissioner's determinations are entitled             
          to a presumption of correctness, and the taxpayer bears the                 
          burden of rebutting such presumption by a preponderance of the              
          evidence.  Rule 142(a); Welch v. Helvering, 290 U.S 111, 115                
          (1933).  The presumption of correctness is procedural in that it            
          transfers to the taxpayer the burden of going forward with the              
          evidence to establish that the Commissioner's determinations are            
          incorrect.  Jackson v. Commissioner, 73 T.C. 394, 400 (1979).               






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