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$365,798.02 and understated funds in one account by $106,941.08.
Inclusion of these items resulted in a $213,816.24 increase in
tax.
On September 19, 1994, petitioner filed its petition. On
May 9, 1995, petitioner and respondent executed a Stipulation of
Settled Issues, in which petitioner conceded several of
respondent's determinations.
OPINION
Petitioner, in its petition, disputed respondent's
disallowance of a $500 deduction for decedent's cleaning expenses
and a $1,733 deduction for her rental expenses. It also disputed
respondent's determination that one of petitioner's bank accounts
had a balance of $146,644.08 instead of $39,703.00, the amount
that was reported on the estate's tax return. Petitioner,
however, offered no evidence at trial to refute these
determinations and failed to address these issues in its briefs.
Accordingly, petitioner has not satisfied its burden of proof on
these items, and respondent's determinations with respect to
these issues are sustained. Rule 149(b); Lowry Hosp. Assn. v.
Commissioner, 66 T.C. 850, 851 (1976). We now turn to the
contested issues in this case.
I. Includability of the Sixteen $10,000 Checks
We must first determine whether the value of the funds
(i.e., $160,000), paid to recipients of sixteen $10,000 checks
written by Marsha, is includable in the gross estate. The gross
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