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OPINION
Petitioners bear the burden of proving that respondent's
determinations in the notice of deficiency are erroneous. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Unreported Income
The parties agree that during 1992 petitioner received
compensation from JMS, which he did not report in petitioners'
1992 return, in an amount equal to at least $175 a week, or
$9,100 for that year.3 Their dispute is whether during 1992
petitioner received more than $9,100 in compensation from JMS.
While acknowledging that during 1992 he received more than $9,100
from JMS, petitioner contends that the amount that he received in
excess of $9,100 belonged to Mr. Mahabir and that, pursuant to
Mr. Mahabir's arrangement, petitioner was required to use such
excess for the benefit of Mr. Mahabir, his family, and/or certain
of Mr. Mahabir's acquaintances. Respondent contends that the
Form 1099, as well as petitioners’ bank statements, shows that
petitioner was permitted to retain for his benefit all money
received from JMS during 1992.
Our resolution of this case depends upon our assessment of
the credibility of the following witnesses who testified at
3 Petitioners reported in their 1992 return all income received
from Linden Lumber and Best Care.
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Last modified: May 25, 2011