Lawrence J. Polidori - Page 11

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               For reasons discussed herein, we conclude that, except as to           
          taxable years 1985 and 1986, the statute of limitations does not            
          preclude assessment and collection of the deficiencies in and               
          additions to tax determined by respondent.  We further conclude             
          that petitioner has failed to establish a nontaxable source for             
          the 66 deposits that he made to the foreign account.                        
          Issue 1. Bank Deposits                                                      
               Bank deposits are prima facie evidence of income, and                  
          petitioner must show that the funds deposited into the foreign              
          account were not obtained from a taxable source.  Rule 142(a);              
          Tokarski v. Commissioner, 87 T.C. 74, 77 (1986).  In order to               
          satisfy his burden, petitioner contends that he had ample                   
          resources from the liquidation of real estate and other assets to           
          provide the funds needed to make the deposits at issue.  He                 
          contends that a sale of 4 real properties in 1979, a receipt of             
          several periodic installment and balloon payments, the collection           
          of a mortgage, and a real property sale in 1984 provided him with           
          the means needed to make the 66 deposits at issue.  He then                 
          contends that this "clearly credible evidence" satisfies his                
          burden and shifts the burden of coming forward to respondent.  We           
          disagree.                                                                   
               Apparently, petitioner fails to appreciate the extent of his           
          burden of proof; moreover, he has fallen far short in his attempt           
          to shift the burden of coming forward to respondent.  Petitioner            
          has indeed presented the Court with evidence suggesting that he             




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