- 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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Last modified: May 25, 2011