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consummated consistently with the terms of the written sales
agreement. Respondent’s bank deposits analyses for 1987 and 1988
indicate large unexplained deposits that may well represent
proceeds received in those years as payments on the sale of
Mr. Makalintal’s ICPI stock.
We also conclude that Mr. Makalintal's sale of ICPI stock
qualifies as an installment sale under section 453 and that under
that method, because no sales proceeds were scheduled to be
received by Mr. Makalintal in 1986, no income relating to the
installment sale is properly includable in Mr. Makalintal and
petitioner’s joint income for 1986.
Further, with regard to 1987 and 1988 and to respondent’s
new alternative issue, respondent has not amended her answer or
otherwise properly and timely raised an issue herein as to the
taxability in 1987 and 1988 of the scheduled installment payments
to be received by Mr. Makalintal in those years. See Rules 40
and 41; Church of Scientology v. Commissioner, 83 T.C. 381, 524
(1984), affd. 823 F.2d 1310 (9th Cir. 1987); Professional Serv.
Corp. v. Commissioner, 79 T.C. 888, 924 (1982). We shall not
consider this issue.
With respect to the additional income respondent has charged
to Mr. Makalintal and petitioner for 1987 and 1988 using the bank
deposits analyses (namely, $501,134 for 1987 and $332,601 for
1988), petitioner bears the burden of proving that the deposits
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