- 22 -- 22 - Kabeiseman during 1990. Petitioners assert on brief (1) that respondent's arguments at trial and on brief that petitioners have unreported income for 1989 and 1990 resulting from the deposits of funds misappropri- ated from K & H and Ms. Velilla and for 1990 resulting from the discharge of the outstanding balances of the Kabeiseman loans raise matters that are not properly before the Court and (2) that, assuming arguendo that such matters were properly before the Court, respondent has the burden of proof as to such matters. To support their assertions, petitioners point out that respondent stated in the notice that certain deposits into petitioners' accounts during the years at issue constitute unreported income for those years from "real estate sales of a general contracting business" or "from contracting", and not from misappropriated funds or the discharge of indebtedness. Respon- dent disagrees, pointing out, inter alia, that respondent's arguments about which petitioners complain are properly before the Court because petitioners were in no way prejudiced or unfairly surprised by them. With respect to the parties' disagreement over whether respondent is raising certain matters not properly before this Court, we note initially that, regardless how we resolve that disagreement, petitioners nonetheless bear the burden of proving that all the deposits at issue are not taxable or that they represent income that they previously reported. See Calhoun v.Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Next
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