M.S. Food Stores, Inc. - Page 35

                                        - 35 -                                        
          checks cashed by the corporate petitioner, since we cannot                  
          distinguish checks that may have been handled in this fashion.  We          
          cannot find that the Suttons received any funds from Mr. Palmer.            
          We have found that the Suttons received funds from the estate;              
          yet, we are unable to trace such funds to the remaining                     
          unexplained bank deposits in the Suttons' personal bank account.            
          In summary, petitioners have failed to prove that any of the                
          Suttons' unexplained bank deposits derived from nontaxable                  
          sources.                                                                    
               The individual petitioners argue that they should not have to          
          include the proceeds of the cashed rebate and coupon checks in              
          addition to the unexplained bank deposits, as this would be double          
          counting.  Since the disposition of the cash proceeds is unknown,           
          we cannot find that they were part of the unexplained bank                  
          deposits.                                                                   
               Additions to Tax under Section 6651                                    
               Respondent has determined additions to tax for late filing             
          for the Suttons' taxable years 1987 through 1990.  The Suttons              
          applied for extensions in each of these years and, for years 1987           
          through 1989, filed their returns after the respective due dates            
          as extended.  They admit that the returns for 1987 through 1989             
          were filed after the due dates as extended, and if a deficiency             
          should be found for any of these years, that some addition would            
          apply for each of those years.  However, they assert that the               






Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011